The overall cryptocurrency market did not record massive price movements following highly anticipated US CPI data. Bitcoin noted recoveries that pushed it beyond the $20,000 value area. Nevertheless, a cryptocurrency analyst says that the leading crypto might witness a massive short squeeze.
An Imminent Big Short Squeeze?
CryptoQuant CEO Ki Young tweeted that traders continued punting $BTC short positions in 2020. That saw them encountering liquidation within the $10K to $20K value areas before the market saw a parabolic run. He revealed that (at that moment) only 10% of 1hr buy orders emerged from short liquidations. Meanwhile, the number now stands at 1% only.
Coinglass data shows over 55K investors and liquidations worth $193 million recorded during the same timeframe. Bitcoin worth more than $53 million has faced liquidation. BTC gained over 5% within the past 24 hours. While publishing this post, the bellwether crypto changed hands at $20,907. Nevertheless, Bitcoin’s daily trading volume gained 10% to $38 billion.
Nevertheless, Young Ju confirmed that a massive bullish run isn’t imminent. He said that it appears near the bottom. Meanwhile, traders and investors should wait until the short squeeze event occurs. He believes that this might happen in the coming few months or years.
Institutions Selling BTC?
CryptoQuant published the General market sentiment blog of the United States Spot & Future markets. It showed that most institutional investors and brokerage platforms utilize the Coinbase exchange. Moreover, Bitcoin trades lower on Coinbase compared to other trading platforms. That showed that U.S institutional investors are selling the leading crypto. Nevertheless, future market investors have presented a surging bullish sentiment. The blog shows Takers’ buy volume outperforming Taker’s sale volume.
Remember, Bitcoin has lost more than 70% since its November 2021 peak. The latest price slump within the crypto markets emerged due to the surged correlation between Bitcoin and tech stocks amid a challenging macroeconomic space.
Nevertheless, BTC has presented massive fundamentals despite the recent lackluster price performance (The Crypto Basic reports). Also, Santiment’s Thursday tween noted that the latest U.S CPI data shows a significant decline in BTC and the equity markets, suggesting a potential breakout.