Massive Short Squeeze for Bitcoin in sight? Top Quant Analyst examines the state of BTC

The CEO of analytics platform CryptoQuant reveals how a major event could impact the Bitcoin (BTC) trend.

Ki Young Ju tells his 303,000 Twitter followers that he is expecting a “big short squeeze,” similar to what happened in late 2020 before Bitcoin kicked off its bull run.

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

“Waiting for a big short squeeze.

At the end of 2020, many people continued to take short positions in BTC and were liquidated between $10,000 and $20,000 before the start of the parabolic bull run.

At the time, 10% of hourly buy orders came from short liquidations. Now it’s around 1%.

Source: Ki Young Ju/Twitter

The CEO of CryptoQuant also said that while the short squeeze could be a sign that BTC has put in a bottom, he doesn’t think Bitcoin will start a new bull cycle anytime soon.

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

I’m just saying it looks close to bottom, and it’s time to wait for that short squeeze event to happen. It could take a few months or a few years for the next parabolic bull run. [We’ll] we never know.”

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

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