The global digital asset market didn’t register much price fluctuation over the announcement of much awaited U.S CPI data. Bitcoin (BTC) recovered to trade over the $20K price level. However, a crypto analyst suggests that it can soon see a big short squeeze.
Is big short squeeze approaching?
Ki Young Ju, CEO of CryptoQuant in a tweet mentioned that back in 2020, traders kept punting short positions on Bitcoin. This led them to a liquidation around the $10-20K price range just before the parabolic bull run started.
He highlighted that at that time only 10% of hourly buy market orders came from short liquidations. Meanwhile, it now amounts to just 1%.
According to the Coinglass, more than 55K traders. Around $193 million worth of liquidation has been registered in the same period of time. Over $53 million worth of BTC has been liquidated.
Bitcoin Prices have jumped by over 5% in the last 24 hours. It is trading at an average price of $20,907, at the press time. However, BTC’s 24 hour trading volume has jumped by 10% to stand at $38 billion.
Meanwhile, Young Ju clarified that the parabolic bull run is not about to start. He suggested that it seems close to the bottom. However, the investors and traders have to wait until this short squeeze event happens. He added that this could happen in a few months or even years.
Institutional investors selling Bitcoin?
CryptoQuant released a blog on the General market sentiment of the US Spot and Future market. It highlighted that most of the institutional investors market makers and brokerage firms are using the Coinbase crypto exchange.
BTC price is trading lower on Coinbase than on other exchanges. This suggests that these US institutional investors are selling. However, the bullish sentiment is on a surge among future market investors. As per the blog, Taker’s buys volume is outperforming the Taker Sell volume.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.