Bitcoin Short Squeeze Could Catapult Price To New All-Time High – Here’s Why
September 29 2024 - 4:30AM
NEWSBTC
Bitcoin has been on an incredible price momentum for the past two
weeks. This momentum, which took many by surprise, saw Bitcoin
breaking above the psychological $65,000 price level again.
According to price data, Bitcoin traded as low as $52,820 on
September 6. Related Reading: Bitcoin Breaks $65K With $365 Million
In Spot ETF Inflows Fueling The Rally Its recent rebound to $66,300
indicates that the king of cryptocurrencies has recovered
substantially by 25.5% in two weeks. According to Coinglass data,
this marks the biggest gains recorded by Bitcoin in September since
2013. Yet, despite this impressive rally, a significant number of
traders continue to bet against BTC. This ongoing trend has set the
stage for a potential short squeeze, which could send the coin’s
price soaring to new all-time highs in October. Here’s a closer
look at how this is happening and what could unfold next. Short
Positions Dominate Exchange According to crypto analyst Ali
Martinez, who shared his insights on social media platform X, a
surprising 57.77% of Binance users with open positions are shorting
Bitcoin. This means that many traders are betting on the price of
Bitcoin to decline, even as it maintains a strong upward momentum.
57.77% of @binance users with open positions are shorting #Bitcoin!
pic.twitter.com/bWQ4d5n6MJ — Ali (@ali_charts) September 27, 2024
However, considering the institutional and whale inflow into
Bitcoin, especially through Spot Bitcoin ETFs, Bitcoin is still
largely in the position to keep trending upwards in the coming
week. The combination of such inflows and the significant volume of
short positions creates the potential for a short squeeze as we
move into October. As September comes to an end, many traders are
keeping an eye on October, which is historically a bullish month
for BTC (Uptober). Bitcoin has often performed well in the fourth
quarter, which is when the industry typically sees increased buying
pressure and institutional inflows. Such a short squeeze could
further push the crypto’s price beyond its previous all-time high
of $73,737 and into new price territories. Bitcoin: Short-Term
Correction On The Horizon? While the outlook for BTC is generally
bullish, there is also the possibility of a short-term correction
in the price over the coming days. The TD Sequential indicator, a
popular tool used by traders to identify potential price reversals,
has flashed a sell signal on the 4-hour chart. This phenomenon was
noted by Ali Martinez, suggesting that Bitcoin could experience a
brief pullback before resuming its upward trajectory. Related
Reading: Stacks: New Network Upgrades Push STX Price Up By 18% –
Details Such a correction would serve as a consolidation phase
after two weeks of bullish price action, giving the market time to
reset before the next big move. Following this trend, it could also
potentially trigger more traders to go short, further fueling the
potential for a bigger short squeeze when BTC rebounds. At
the time of writing, Bitcoin is trading at $65,658. Featured
image from CNBC, chart from TradingView
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