After surging to its yearly high of $9,818, the bulls and the bears are once again stuck playing tug-of-war. However, this period of range-bound trading will sooner or later come to an end with BTC potentially shooting all the way up to $11,000.
A short squeeze in the works
Crypto trader Anondran noticed that Bitcoin recently touched the upper Bollinger Band while simultaneously moving to the top line of the Ichimoku cloud.
On top of that, the trader noticed that there was "a ton" of short trade stop losses above this resistance level that go all the way to $11,000. This could trigger a short squeeze when many traders are scrambling to cover and close their positions as the BTC price continues to rise.
A bearish scenario
However, even with Bitcoin inching closer to hit the shiny $10,000 mark, bulls are not out of the woods. Anondran also offered a bearish case where the recent price surge could simply be a head fake. He doesn't rule out that the price of BTC could suddenly reverse back to $8,500.
As reported by U.Today, Fundstrat's analyst Robert Sluymer concluded that it was unlikely for Bitcoin to witness another deep correction even after it appears in the $10,000-$11,000 resistance band.