A renowned crypto trader believes that Bitcoin (BTC) will see a fake move on August 28, as the week starts, so market makers can then go for a short squeeze that should drive BTC prices between $27,000 and $28,300 during the rest of the week.
Notably, the X account, CrypNuevo (@CrypNuevo), has a good record of accurate Bitcoin analysis that is shared weekly in a so-called “BTC Sunday Update”. Their technical analysis usually considers liquidity data and market psychology — looking for insights regarding market makers’ moves.
This week’s analysis comes with a projection of a fake move on Monday, that could go as low as the $25,300 zone, meeting previous lows, in what the trader describes as a strategy by market makers to let retail open more short positions, creating more liquidity to the upside.
However, if the downside move really takes place, CrypNuevo will not be opening any shorts. This is because the trader believes that market makers will take this extra liquidity as an opportunity to profit, performing what is called a short squeeze.
With the maneuver, Bitcoin is expected to go as high as $28,300, in the area marked as the ‘current range’. This is “likely to occur before PCE (inflation report) on Thursday and NFP on Friday”, says CrypNuevo.
Bitcoin could go to $24,000 and below
Interestingly, the above price prediction is only a short-term analysis. The trader also thinks that this is part of a bigger plan by the market makers, aiming to clean the massive liquidity around the $24,000 mark.
According to CrypNuevo, this liquidation zone is being avoided, besides the BTC price coming so close to it. “I have seen this before”, the account says.
“It’s because the Market Makers plans to induce traders to open longs here so the liquidity will increase in that zone so when they finally hit that zone, it’ll be more effective.”— CrypNuevo on X
Bitcoin price analysis
As expected by the crypto analyst, Bitcoin has opened the week losing the $26,000 psychological price support, trading at $25,926 by press time, with 0.58% losses on the day. If the leading cryptocurrency’s price plays as projected, there is still room for more downside, before a short-term trend reversal to the upside.
All things considered, the digital asset’s ability to meet the above analyst’s expectations will depend on further developments related to Bitcoin, as well as the general sentiment on the wider crypto and macroeconomic landscape.
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