Bitcoin bulls should be on the lookout for a short squeeze.
Ki Young Ju, CEO of crypto analytics firm CryptoQuant in a tweet on Thursday, revealed he was waiting for massive Bitcoin seller liquidation to kick start a bull run for the leading digital asset.
“Waiting for a big short squeeze. In late 2020, many people kept punting short positions on $BTC and got liquidated in the $10k-20k range before the parabolic bull-run started,” tweeted Young Ju. “Back then, 10% of hourly buy market orders were from short liquidations. Now, it’s around 1%.”
Clarifying his statements in a second tweet, Young Ju notes that he is not saying a bull run is imminent as it may still take months or years, but an event of destroying the short sellers is around the corner.
“To be clear, I didn’t say that the parabolic bull run is about to start,” Young Ju tweeted. “I’m just saying it seems close to the bottom, and it’s time to wait until this short squeeze event happens. It could be for like a few months or years for the next parabolic bull run; we never know.”
It is worth noting that Bitcoin has dropped over 70% from its peak in November 2021 despite hopes that the digital asset would clinch the long-anticipated $100k price point. The recent decline in the crypto space has been attributed to the increased correlation of Bitcoin with perceived risky tech stocks in an increasingly difficult macroeconomic environment.
So far, there has been little consensus on what would characterize the bottom and the narrative that would usher in the highly desired bull run. Notably, on Monday, controversial Bitmex founder Arthur Hayes responding to the news of Euro parity with the Dollar noted that the “Doom Loop” has started. Hayes points to his analysis in an article in April where he predicted that there would be a massive inflow to Bitcoin and gold as inflation leads to Euro and Dollar weakness.
Notably, according to Hayes, this narrative will drive the price of Bitcoin to $1 million.
Bitcoin has shown strong fundamentals in recent weeks despite lackluster price movements, as highlighted in multiple reports by The Crypto Basic. Moreover, in a tweet on Thursday, Santiment Feed notes that following the latest US CPI release, the correlation between Bitcoin and the equities market has dropped significantly, indicating a possible breakout.
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Source: https://thecryptobasic.com/2022/07/15/cryptoquant-ceo-says-bitcoin-is-close-to-the-bottom-but-this-needs-to-happen-first/?utm_source=rss&utm_medium=rss&utm_campaign=cryptoquant-ceo-says-bitcoin-is-close-to-the-bottom-but-this-needs-to-happen-first