BTC Rally May Continue According to Analyst

On-chain analyst Charles Edwards, in a post he shared on his official social media account the other day, stated that the rise in Bitcoin in January is exactly the same as the movements in 2021, when China banned Bitcoin mining. The analyst pointed to the uptrend at the end of the cycle that took place in 2021, implying that the price may continue to rise in the near future.

“The January short squeeze was a mirror image of the 2021 China mining ban Bitcoin price bottom.

1- A catastrophic event causes a long-side liquidation (2021 China, 2022 FTX).

2- A period of sideways builds up negative sentiment & short bias

3- Massive short squeeze”

Edwards talked about a 3-stage cycle in his post. Stating that in the cycle he shared, there should be a major decline first and that this is already happening, the analyst cited the fall in China in 2021 and the fall after the FTX bankruptcy in the last months of 2022.

In the second stage, the analyst stated that the price remained flat during a long-term consolidation period and the negative effects began to increase. Finally, he used the phrase “short squeeze,” which meant forcing short-selling people to buy. According to the analyst, the last move will be a rise in prices in the form of a quick and definite rally. In the chart he shared, the analyst drew attention to how similar both cycles are to each other, noting that the rally in Bitcoin could continue.