Bitcoin Poised for a ‘Massive’ Short Squeeze, Potential for Price Surge to Go ‘Vertical

Bitcoin Poised for a ‘Massive’ Short Squeeze, Potential for Price Surge to Go ‘Vertical

Bitcoin News
March 27, 2024 by Diana Ambolis
256
Lead Analyst Pav Hundal of Swyftx Asserts: It’s Not a “Classic Bulls Versus Bears Battle,” while CEO Cory Klippsten of Swan Bitcoin Anticipates: “Someone’s Bound to Yield Eventually. As Bitcoin (BTC) hovers around the $70,000 mark, there’s growing speculation that short-sellers are feeling the squeeze amid diminishing downtrends and faster-moving uptrends. This dynamic could potentially
bitcoin

Lead Analyst Pav Hundal of Swyftx Asserts: It’s Not a “Classic Bulls Versus Bears Battle,” while CEO Cory Klippsten of Swan Bitcoin Anticipates: “Someone’s Bound to Yield Eventually.

As Bitcoin (BTC) hovers around the $70,000 mark, there’s growing speculation that short-sellers are feeling the squeeze amid diminishing downtrends and faster-moving uptrends. This dynamic could potentially propel Bitcoin’s price to $80,000, according to an analyst.

According to insights from The Kobeissi Letter posted on March 26, this scenario indicates a classic sign of shorts being squeezed as Bitcoin ventures into fresh all-time high territory. The Kobeissi Letter highlighted a key factor driving the BTC short squeeze: the significant margin between institutional long positions and hedge fund short positions, which is currently at a record high. While hedge funds hold nearly 15,000 net short contracts, institutions maintain nearly 20,000 net longs.

Furthermore, Bitcoin’s price dips are becoming progressively shorter. Over the past seven days, Bitcoin ranged from its lowest point at $61,224 on March 20 to its peak at $71,511 on March 26, representing a mere 8.7% gap, based on data.

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Currently priced at $70,480, if Bitcoin reaches $71,000, it could trigger the liquidation of $156.18 million in short positions, as per data. A climb to $75,000 would liquidate $3.85 billion in short positions.

Swyftx’s lead analyst, Pav Hundal, suggested to sources that this could potentially propel Bitcoin to unprecedented all-time highs, with $80,000 being a feasible target. Hundal noted that a short squeeze could drive Bitcoin’s price to surge vertically, leading to serious considerations of reaching the $100,000 mark this year. Meanwhile, Swan Bitcoin CEO Cory Klippsten highlighted the ongoing tug-of-war between long and short positions, predicting that eventually, one faction will give way.

Klippsten emphasized that asset managers might be hedging their positions by holding both long and short positions, rather than engaging in a typical bull versus bears battle. He suggested that institutional investors are likely hedging their bets to mitigate downside risks, indicating a risk management strategy among asset managers.

Klippsten further suggested that the increased trading activity in Bitcoin could be in anticipation of the upcoming Bitcoin halving scheduled for April 21. He explained that historically, Bitcoin halving events are accompanied by speculative trading, where traders buy on the rumor and sell on the news, potentially leading to short-term price fluctuations in Bitcoin.