Jiang Zhuoer, founder of the mining pool B.TOP, in his assessment of Bitcoin's short-term price movements, stated that a significant market correction could occur following the liquidation of highly leveraged positions.
According to Zhuoer, in the most likely scenario, Bitcoin will first break through the intensive liquidation zone above $76,000. During the same period, Ethereum is also expected to test a liquidation zone around $2,665, liquidating a significant portion of short positions at higher levels.
After Bitcoin surpassed the $76,000 mark, Zhuoer noted that two different scenarios have emerged.
In the first scenario, Zhuoer stated that if Bitcoin recovers without falling below $75,000, the rally could continue to $80,000, and he believes the price could even test a strong resistance zone between $83,000 and $84,000. However, in the analyst's opinion, such a rise could be followed by a larger correction.
In the second scenario, if Bitcoin loses the support level of $75,000, a deeper correction is expected, mirroring the upward movement that started from $64,000. Zhuoer predicts that in this case, Bitcoin could fall to the $70,000–$72,000 level before transitioning to the next phase of the bull market.
Zhuoer added that the bill vote expected next week, along with the actions of the Federal Reserve, will be important catalysts that could determine the market's direction.
Due to this uncertainty, Zhuoer explained that he is adhering to a more balanced strategy, considering the market direction, and holds a full short position on Bitcoin and a full spot position on Ethereum.
*This is not investment advice.
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