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%.
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.
Don’t miss a beat – Subscribe to receive crypto email alerts straight to your inbox
Check Price Action
follow us on TwitterFacebook and Telegram
Surf the Daily Hodl Mix
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl engages in affiliate marketing.
Featured Image: Shutterstock/Sensvector/Catalyst Labs