The CEO of analytics platform CryptoQuant is revealing how a major event could impact the trend of Bitcoin (BTC).
Ki Young Ju tells his 303,000 Twitter followers that he is waiting for a “big short squeeze,” similar to the one that occurred in the latter part of 2020 before Bitcoin ignited its bull cycle.
A short squeeze happens when traders who borrow units of an asset at a certain price in hopes 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.
In late 2020, many people kept punting short positions on BTC and got liquidated in the $10,000 – $20,000 range before the parabolic bull run started.
Back then, 10% of hourly buy market orders were from short liquidations. Now, it’s around 1%.”
The CryptoQuant CEO also says that while the short squeeze could be a sign that BTC has put in a bottom, he does not think that Bitcoin will start a new bull cycle anytime soon.
“To be clear, I didn’t say that the parabolic bull run is about to start.
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’ll] never know.”
Bitcoin is trading for $20,694 at time of writing, an increase of slightly over 1% in the past 24 hours.
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Source: https://dailyhodl.com/2022/07/16/massive-short-squeeze-for-bitcoin-in-sight-top-quant-analyst-looks-at-the-state-of-btc/