A prominent cryptocurrency analyst has issued a stark warning to investors: avoid shorting Bitcoin (CRYPTO: BTC) and altcoins during their current rally.
CrediBULL Crypto’s analysis, based on recent market data, suggests that the rally is far from “overheated,” as some investors believe.
Analyzing The Market: Data Over Speculation
Credible Crypto emphasizes the importance of looking at hard data rather than speculative sentiment. He argues that there is nothing in the current data to suggest that the Bitcoin rally is “overheated.”
People keep trying to time the top with shorts and/or profit taking because they believe this rally is “overheated”.
Guys, look at the data. There is literally nothing “overheated” about this rally.
We simply keep sending it till every last bear is dead.$BTC https://t.co/z54AMCpq4E
— CrediBULL Crypto (@CredibleCrypto) December 5, 2023
This observation comes as many traders attempt to time the market’s peak, either by shorting or taking profits prematurely.
Also Read: Dogecoin, Shiba Inu And FLOKI Sniff Out Competition As BONK Shakes Up Dog-Themed Token Turf
The Short Squeeze Phenomenon
The analyst further notes that the market has recently witnessed a significant short squeeze, evidenced by a drop in open interest (OI) alongside Bitcoin’s price pump.
This squeeze, where short-sellers are forced to buy back at higher prices, contributes to the upward momentum of Bitcoin’s price.
Credible Crypto also mentions that the funding rates are still looking healthy, reinforcing his view that the rally has more room to grow.
Predictions For Resistance Levels
Looking ahead, Credible Crypto forecasts that Bitcoin will break through major resistance levels more swiftly than most anticipate.
He specifically points to the $40,000 mark as a key level to watch as a support.
Read Next: Grayscale’s Ethereum ETF Dreams Deferred As SEC Extends Review
Photo: Shutterstock
