Bitcoin Price is Back Above $20,000, But Buying BTC Here May be Tricky

Bitcoin bears appear to have deserted since the early trading hours as the prices regained their position above $20,000. A short-term bounce could attract many who are looking at a profitable deal ahead. However, the BTC price still appears under the control of the bears who could slash the price at the right time. Therefore, the Bitcoin upswing during these times appears not less than a trap.

The BTC price has been heavily consolidating within the ranges between $19,500 and $21,800 for a pretty long time. Therefore, it is quite possible that the accumulations at these rates may have surged significantly. Hence, no particular trend may be expected until the asset clears either of these two price zones. Until then, buying Bitcoin appears to be pretty risky as the upcoming trend still remains uncertain. 

Big Short-Squeeze Incoming

With the ongoing price movements, the CEO of a popular on-chain analytical company CryptoQuant, Ki Young Ju believes a massive short-squeeze may be fast approaching. 

Previously many traders constantly accumulated short-positions between $10,000 to $20,000 in the late 2020s which further led to the ignition of a massive bull run. 

The analyst further clearly states that it does not significantly mean that BTC could resume with a bull run. The main reason is said to be the hourly buy market orders which accounted for 10% then have miserably reduced to just 1%. Hence the impact of the short squeeze may be limited and restricted within the regions. 

However, considering the above metrics, it can be analysed that BTC bottoms may be pretty near. Therefore, the analyst suggests that it is better to wait for the event to happen which may be in the next couple of months or years. 

Traders Appear Bewildered with Upcoming Price Action

Bitcoin’s price action remained more or less stagnant for the past many days. This raised many concerns over the strength of the rally as the volumes remained within a decent range which had less impact on the price. In a recent update, it appears that the traders remain pretty indecisive as they have placed equal bets on both long and short.