Analyst Sheldon took to Crypto Banter’s channel and noted that Bitcoin’s price at $71,000 is a sign of a strong market resurgence. Despite slight concerns in the stock market, it held up well, leading to a positive push from Bitcoin. The exciting aspect now is the potential squeeze in altcoins.
He pointed out that Bitcoin has initiated the squeeze, with the crucial barrier being the $72,000 mark. This indicates a potential breakthrough of the all-time highs, signaling the onset of the optimism stage in the higher time frames of the market cycle.
The analyst explained that a strong resistance level was around $65,000, now shifting to approximately $72,000. This indicates that a significant short squeeze could occur, potentially causing the market to surge if Bitcoin breaks its all-time high. Currently, Bitcoin is hovering around $71,000 to $72,000, suggesting a great resistance zone. This means that while it might take some time to reach $72,000 to $73,000, a breakout could lead to a rapid price increase.
Here are the three potential scenarios explained by the analyst:
Liquidation Trap: There could be a quick upward movement to around $76,000, followed by a brief shakeout before continuing upwards.
Pullback and Surge: Bitcoin might experience a small pullback to around $70,000 or $69,500 before rocketing upwards.
Continuous Rally: There might not be a trap, and Bitcoin could simply surge past its all-time highs, potentially reaching around $84,000 in a few days. The next target is $100,000, although this is a higher time frame target.
Reflecting on past cycles, he observed a similar pattern of a brief downturn before entering the optimism phase, explaining the importance of being prepared and strategically entering the market. At the time of writing, Bitcoin is slightly trading above the $71k levels.
