There has been an optimistic atmosphere in the Bitcoin and altcoin world lately. Especially exceeding the 27 thousand dollar band triggers this optimism. However, according to the latest data, there is a Short Squeeze on the horizon for BTC. So what to expect next? Is a significant decline imminent? Let’s take a look at the details together.
Bitcoin short squeeze on the horizon: Crypto investors increase their short positions
Situations expressing the expected return in crypto trends stand out from time to time. Accordingly, cryptocurrency enthusiasts follow the developments in the sector closely. Bitcoin, the dominant cryptocurrency, has been exhibiting relatively steady sideways movements lately. But the tides are turning. On the other hand, it may herald the possibility of significant Bitcoin price changes in the near future.
On the other hand, there has been a fluctuation in short positions lately. Currently, a notable trend among crypto investors is the increase in Bitcoin-related short positions. Analysis of crypto market activities reveals that a large number of investors have initiated short positions in Bitcoin recently.
Potential Bitcoin short squeeze
Recent insights from Santiment, a leading cryptocurrency data provider, shed light on this intriguing development. Santiment’s observations show a steady increase in Bitcoin short selling on exchanges such as Deribit and Binance. His latest posts highlight that Bitcoin is more likely to experience upward price movements due to short-driven liquidations.
📊 #Bitcoin traders are aggressively shorting on both #Deribit and #Binance, making potential liquidations more likely to boost prices. $BTC's price is +4% since the increase in shorting began to appear last week. This has a good probability of continuing. https://t.co/c8eTpAxIoP pic.twitter.com/8REpjp2rtx
— Santiment (@santimentfeed) September 20, 2023
Santiment shares important data on this subject. According to Santiment, Bitcoin traders are aggressively shorting Bitcoin on Deribit and Binance. Accordingly, this potentially increases the possibility of liquidations increasing prices. BTC price is up 4% since short positions started increasing last week. This situation is likely to continue.
BTC is at an important stage
At the time of writing, Bitcoin has fallen slightly below the $27,000 band. Accordingly, there is a decrease of approximately 0.8% in the leading cryptocurrency compared to yesterday. When we look at Kriptokoin.com, the crypto community is waiting for developing events. On the other hand, the most important question still remains: Will Bitcoin, the pioneer of the cryptocurrency world, regain the $ 30,000 level as a result of these short liquidations?
The cryptocurrency market has a tendency towards rapid changes. Accordingly, this situation keeps traders and enthusiasts on their toes. Additionally, the recent increase in short positions indicates that exciting times may be ahead for Bitcoin.
