CEO of the analysis platform CryptoQuant reveals how a major event can affect the trend of Bitcoin (BTC).
Ki Young Ju tells his 303,000 Twitter followers that he is waiting for a “big short hug”, similar to the one that happened in the latter part of 2020 before Bitcoin ignited its bull cycle.
A short squeeze occurs when traders who borrow units of an asset at a certain price in the hope of selling lower to get the difference in their pocket (card) are forced to buy back when the trade moves towards their skew.
«Waiting for a big short hug.
At the end of 2020, many continued to tip short positions on BTC and were liquidated in the range of $ 10,000 – $ 20,000 before the parabolic bull run began.
At that time, 1[ads1]0% of orders for hourly purchases were from short-term liquidations. Now it’s around 1%. “
The head of CryptoQuant also says that although the short squeeze may be a sign that BTC has inserted a bottom, he does not think that Bitcoin will start a new bull cycle right away.
“To be clear, I did not say that the parabolic bull run is about to start.
I’m just saying that it seems close to the bottom, and it’s time to wait until this short squeeze happens. It can take a few months or years until the next parabolic beef race. [We’ll] never know. “
Bitcoin is trading at $ 20,694 at the time of writing, an increase of just over 1% over the last 24 hours.
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