Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
Jiang Zhuoer, founder of the B.TOP mining pool, stated in his assessment of Bitcoin’s short-term price movements that a significant correction could occur after the liquidation of highly leveraged positions in the market.
According to Zhuoer, in the most likely scenario, Bitcoin will first clear the intense liquidation zone above $76,000. During the same period, Ethereum is also expected to test the liquidation zone around $2,665, liquidating a significant portion of short positions at higher levels.
After Bitcoin cleared liquidity above $76,000, Zhuoer noted that two different scenarios emerged.
In the first scenario, Zhuoer states that if Bitcoin recovers without falling below $75,000, the rally could continue up to $80,000, and he believes the price could even test the strong resistance zone between $83,000 and $84,000. However, according to the analyst, a larger correction could follow such a rise.
In the second scenario, if Bitcoin loses the $75,000 support level, a deeper correction is expected to occur, mirroring the upward movement that began from $64,000. Zhuoer predicts that in this case, Bitcoin could fall to the $70,000-$72,000 region before entering the next phase of the bull market.
Zhuoer added that the expected vote on the bill next week, along with developments from the Fed, will be important catalysts that could determine the direction of the market.
Due to this uncertainty, Zhuoer explained that he is pursuing a more balanced strategy against market direction, holding a full short position in Bitcoin and a full spot position in Ethereum.
*This is not investment advice.
Source: cryptonews.net