Bitcoin (BTC) is currently consolidating in a low time frame (HTF) after peaking at $77,230 on Friday night. Now, the same analyst who predicted this price target for the weekend warns of a potential long squeeze for Bitcoin.
As Finbold covered, CrypNuevo shared an analysis targeting a range between $77,000 and $77,500 for Bitcoin’s weekend. BTC reached the analysts’ target a few hours later, now preparing for a potential corrective long squeeze, he warned.
$BTC update:
— CrypNuevo 🔨 (@CrypNuevo) November 8, 2024
$77k hit – liquidations hit 🔨🤝
Now yes… potential long squeeze in the making to shake-out some longs.
Talk more in the BTC Sunday update with more data! https://t.co/3q0Dp9iBpo pic.twitter.com/Podmtybp7H
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In a recent thread on X, CrypNuevo explained how Bitcoin longs are “at a risky level,” tracing two possible scenarios. The trader sees a potential bull trap rally again to $77,500, followed by a pullback to $72,100. However, the retracement can happen at any moment, including from the current level, without rallying first.
“Not sure if we’ll revisit the upside box, but I’m feeling pretty confident that we’ll get a (shallow) pullback from around that zone. If we look at the delta liquidations now, longs are at a risky level.”
– CrypNuevo
Bitcoin liquidation levels and the long squeeze logic
In particular, CrypNuevo is looking at Bitcoin’s long liquidation levels from Hyblock Capital. According to the trading expert, BTC’s long open interest is currently approaching a “risky level,” historically marked by long squeezes.
“Usually, we see imminent squeezes when it’s between $30B-$35B using this setting. We’re at $27.5B, practically there.”
– CrypNuevo
Therefore, Bitcoin could go up to attract more longs, reach the historical long-squeeze threshold, and then liquidate the over-exposed traders.
Bitcoin price analysis and trading plan for the weekend
Interestingly, CrypNuevo published this analysis a day before what he usually does on weekends. As explained, this was due to an impending volatility that may rush things up as long liquidations are accumulating quickly.
Yet, the trader is not planning to open short positions, considering his high time frame (HTF) bullish forecast. The plan here is to wait for the market to play out as expected and embrace the pullback as an opportunity to open new longs at lower prices than the currently trading $76,420.
Furthermore, the smart trader disclosed a special interest in altcoins and said he would favor longing them in a pullback. This is because CrypNuevo and other analysts believe Bitcoin Dominance (BTC.D) will start retracing once it gets between 60% and 62%, triggering an altseason.
Historically, altcoin seasons create opportunities for expressive gains like 30x potential returns against a limited Bitcoin’s growth potential. Still, Bitcoin continues to attract institutional interest, and BlackRock’s iShares Bitcoin ETF IBIT registered significant volume this week.
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