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Popular crypto strategist Michaël van de Poppe believes Bitcoin (BTC) can more than double its value next year despite the widespread negative sentiment in the digital asset markets.
In a new strategy session, Van de Poppe tells his 164,000 YouTube subscribers that Bitcoin is currently trading within a wide range with resistance at $18,600 and support at $12,300.
According to the crypto analyst, BTC bulls must take out its immediate resistance to get any momentum going.
“Everything that’s beneath $18,600 can be classified as deviation or can be classified as trend continuation. If we’re not able get above $18,600, you [can argue that] you’re looking at $12,300. However, the amount of people that are currently focused on it is kind of heavy, which means that we are most likely not going to get there.”
Van de Poppe says that BTC bulls must push Bitcoin above a key level to trigger a massive short squeeze.
A short squeeze happens when traders who borrow units of an asset at a certain price in hopes of selling them for a lower price to pocket the difference are forced to buy assets back as the trade moves against their bias.
Says Van de Poppe,
“If we are able to break $20,600, we are breaking the trend because we’re taking out these highs ($20,000) and the amount of [short] stops above this high is going to be sufficient, which means that most likely we’re going to have a runner taking place towards this block here, which is the block at $29,200 and probably going to continue moving towards the block around $38,500 as I think that we’re just going to take liquidity above here.”
Source: Van de Poppe/YouTube
At time of writing, Bitcoin is changing hands for $16,878, flat on the day.