Crypto analysts throughout the market can often be hit or miss, and usually comes down to how many times they have been right before. Since the crypto market fluctuates relentlessly, there is no real way of telling when assets will rise or fall.
So, analysts will often go on something as simple as a gut feeling, which often gets them similar results to when they would do research and find out where the market will go next. However, some analysts in the market manage to stand out more than others, simply because their predictions never miss the mark.
While it is not clear where they get these predictions from, the fact that they are able to help investors is often enough to keep them going. And one of these major investors has come around with a big prediction about Bitcoin, saying that investors should be expecting a short squeeze.
Short Squeeze for BTC
Crypto analysts have been making plenty of predictions about the crypto market for some time now, but none of them have necessarily come to light. Some were predicting that Bitcoin could soon break past $22,000, which lands in it a prime position to make a major recovery.
However, while most of the market continues to struggle past a certain point, the analyst believes that Bitcoin is likely headed for a short squeeze as the Dollar index starts losing steam. And when the right time comes, Bitcoin could see some major gains.
The analyst in question here is Kevin Svenson, who has a total of 116,000 followers on Twitter. And it was here where he claimed that Bitcoin could experience an incredible rally as soon as the Dollar Index takes a dip.
Unprecedented Growth of the Dollar Index
One of the most impressive things about the recent financial market is that despite overall negative turnout due to rising inflation rates and interest rates, the US dollar index was doing surprisingly well. So, despite various other currencies falling, the dollar continued to grow compared to that initial price.
However, despite the unprecedented success of the USDX, people are keeping an eye out for when it will start slumping. the asset slumping means that some of the bigger investors are looking to take their money out and put it into some riskier investments. They essentially want to leave the safety of the US dollar.
And according to various analysts, these investors might just invest their cash into stocks and crypto.
Nothing is Impossible
While many analysts have made predictions about Bitcoin rallying soon, Svenson’s prediction is the one that makes the most sense. Furthermore, the best thing about it is that when Bitcoin starts to rise, it tends to take the rest of the market up with it.