November 19, 2024

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Massive short squeeze for bitcoin on the horizon?  Top quantum analyzer looking into the state of BTC

Massive short squeeze for bitcoin on the horizon? Top quantum analyzer looking into the state of BTC

The CEO of analytics platform CryptoQuant reveals how a major event affected the direction of Bitcoin (BTC).

Ki Young Ju tells his 303,000 Twitter followers that he is waiting for a “major short squeeze,” similar to the one that occurred in the latter part of 2020 before Bitcoin ignited its rally cycle.

Short squeeze occurs when traders who are borrowing units of an asset at a certain price in the hope of selling at a lower price to pocket the spread (short) are forced to buy back while the trade moves against their bias.

“Waiting for a great short squeeze.

In late 2020, many people continued to trade short BTC positions and liquidated in the $10,000-$20,000 range before the parabolic bull started.

At the time, 10% of hourly buy orders were short liquidations. Now, it’s about 1%.”

source: Ki Young Joo / Twitter

The CryptoQuant CEO also says that while the short squeeze may be a sign that BTC has bottomed, he doesn’t think Bitcoin will start a new bull run anytime soon.

“To be clear, I didn’t say the equivalent bull run was about to begin.

I’m just saying it looks close to the bottom, and it’s time to wait for that short event to happen. It might be for a few months or years for the next equivalent bull run. [We’ll] You will never know.”

Bitcoin It is trading at $20,694 at the time of writing, an increase of just over 1% over the past 24 hours.

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