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Crypto analyst and trader Sheldon has signaled a decisive strategic shift, pivoting from a short-term bearish outlook to an aggressive bullish stance as Bitcoin approaches critical support zones. Reporting from Dubai amidst widespread market fear, the analyst projects a violent short squeeze that could propel Bitcoin toward the $100,000 to $110,000 range, driven by exhausted selling pressure and massive liquidity trapped in short positions.
Key Strategic Takeaways
- Targeting New Highs: A projected rally to between $100,000 and $110,000 is expected to test the resilience of the bear market structure before a long-term direction is decided.
- Short Squeeze Imminent: Liquidity maps indicate billions of dollars in short positions are vulnerable, creating a "max pain" scenario to the upside.
- Altcoin Accumulation: The current market downturn in altcoins represents a slow "exchange of hands" rather than a crash, retesting liquidity wicks from October 10.
- Monthly Technicals: Oversold conditions on monthly timeframes and bullish candle structures suggest a recovery beginning in February.
Contrarian Bullish Pivot
Following a period of accurately predicting downside momentum, Sheldon outlined his rationale for flipping bullish while market sentiment remains predominantly negative. The analyst argues that the current market structure is designed to flush out retail investors just before a major reversal.
The primary driver for this outlook is liquidity. According to the analyst, the market has wiped out long leverage, leaving a significant imbalance. The concentration of liquidity has now shifted to the upside, specifically around the $100,000 mark, where billions in short positions are accumulated.
"Everyone is flipping bearish, and this is the perfect time for me to focus on building positions. Market volatility has stepped in, and the bounce is going to be pretty quick and aggressive. We are fishing when no one is fishing."
The strategy relies on the concept of "max pain," a theory suggesting markets move toward the price point that causes the greatest financial loss to the largest number of option holders and traders. Currently, with the majority of the market positioned for further declines toward $60,000 or $40,000, a sharp rally would liquidate late sellers.
Technical Outlook: The Path to $110,000
The trading plan hinges on Bitcoin holding current support levels or performing a "fake-out" dip to the $76,000–$82,000 region before rallying. The immediate upside target remains a bounce to approximately $87,000-$88,000, followed by a more sustained push to the $105,000-$110,000 zone.
Sheldon noted that while momentum indicators on the 4-hour chart have not yet confirmed a breakout, the price action is deviating significantly from the trendline. Historically, when price moves far from the median trend, a snap-back rally occurs. The analyst warns that the first bounce is often a "fake bounce," designed to trap premature bulls before the true reversal occurs.
Monthly Indicators Signal Recovery
Zooming out to the monthly timeframe, the technicals suggest the bearish momentum is nearing exhaustion. The analyst pointed to the Stochastic RSI approaching oversold territory and the structure of the current monthly candle. A large wick to the upside on a monthly candle often precedes a green candle that fills the body of the previous movement.
"The market is literally coiling up for the same thing that it's done many times: get people in late. I guarantee you when Bitcoin gets to $100,000, people still won't believe it. When it gets to $110,000, they will start believing, and by then, they are late to the party yet again."
Altcoin Accumulation Dynamics
While Bitcoin dictates the macro direction, the analyst provided a distinct outlook for the altcoin market. Current price action is viewed not as a crash, but as an accumulation phase. The market is currently filling the liquidity wicks left by the crash on October 10, a necessary technical process to establish a solid floor for future growth.
The analyst drew a sharp distinction between rapid crashes, which are designed to wipe out leverage, and the current slow bleed, which signifies institutional accumulation.
- Ethereum (ETH): Sitting at lows but showing signs of potential reversal near momentum trends.
- Solana (SOL): Displaying relative strength and nearing a breakout trendline.
- SUI & AVAX: Currently filling prior liquidity wicks, presenting long-term entry opportunities.
This phase is described as an "exchange of hands," where impatient capital capitulates to patient, smart money. The slow grind downwards is psychologically taxing, intended to convince retail investors that the asset class is failing, allowing institutional players to acquire positions at a discount.
"Phase two is the exchange of hands. The first wick was to do damage; the drop we are seeing now is a lot slower. This is accumulation. This is where smart money is accumulating these altcoins and completely wiping out anyone that still exists in the market."
Looking Ahead: February Recovery
As the monthly close approaches within the next 48 hours, the focus shifts to February. The convergence of oversold monthly conditions, high short interest, and support at historical all-time highs supports the thesis of a green month ahead.
Traders are advised to watch specific trendline breaks on the 4-hour chart as confirmation for entry. The analyst has already initiated small long positions with tight stop-losses around $81,950, with plans to deploy significant capital once the major trendline resistance is breached. If the market successfully reclaims these levels, the resulting short squeeze could mark the beginning of the year's most significant financial opportunity.
