A cryptocurrency analyst is warning of the possibility of a “fake” upward movement in the price of Bitcoin (BTC), which could lead the cryptocurrency to reach the US$27,000 price zone in the coming days.
However, he also warns that this short-term surge could be followed by a massive sell-off event, pushing Bitcoin below $24,000.
The analyst known as @CrypNuevo has gained prominence for his accuracy in technical trading analysis, as evidenced by his previous prediction of a false decline in the price of Bitcoin on August 28, followed by a rapid rise.
While the cryptocurrency market recorded losses on September 11, the analyst believes the opposite will happen compared to his previous analysis.
He suggests that Bitcoin market makers are preparing for a false rise to $26,900, before triggering a large liquidation of long positions in the $24,000 price zone possibly reaching $23,000.
It is interesting to note that this drop had already been predicted by CrypNuevo previously. The analyst believes that market makers and Bitcoin whales have been preparing to hit these sub-$24K price targets since possible approval on spot Bitcoin ETFs cooled off.
According to him, BTC is currently testing the $25,500 support zone, before the possible rise to $26,900, followed by a significant drop to $23,000.
The analyst also highlights that this week promises to be highly volatile, with the release of US CPI data and the Delaware Bankruptcy Court’s decision on the FTX liquidations, both scheduled for September 13th.
“Cryptocurrency investors should pay attention to these events that could significantly influence the market, but I am convinced that we could have a rally that will actually be a trap that will catch the optimists and cause a large wave of liquidations towards $24 thousand”, he concluded.