Bitcoin remains in limbo after retesting $20,000 level, but this analyst believes a minor squeeze is coming
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- don’t get too excited
- bitcoin is in limbo
Ki Young Joo, CEO of Cryptoquant, a South Korea-based on-chain analytics company, has predicted That bitcoin could soon see a massive short squeeze.
He noted that many traders continued to accumulate short positions at $10,000-$20,000 at the end of 2020, which were later wiped out.
As of June, short liquidations accounted for about 10% of hourly buy market orders. Such a scenario may now emerge, giving bitcoin a hand in hand.
don’t get too excited
According to Xu, the fact that Bitcoin could potentially experience another significant short squeeze does not mean that a new bullish cycle is about to begin.
However, this indicates that the cryptocurrency is close to bottom out. Last month, bitcoin fell to $17,600 before seeing a mild relief rally.
It may take “a few months or even years” for another parabolic bull run to begin. Brandt predicted that the next bitcoin “rocket phase” would ignite in 2024.bitcoin is in limbo
On July 13, the largest cryptocurrency managed to reclaim the $20,000 level, but the market sentiment remains extremely bearish.
As per the latest update, the “Fear & Greed Index” remains in the “extreme fear” zone.
A recent survey by Bloomberg showed that most retail and institutional investors expect the largest cryptocurrency to drop to $10,000.
Some analysts view the Fed’s increasingly aggressive monetary policy. The central bank may now announce a hike of 100 basis points after the most recent inflation data.
The top cryptocurrency is currently trading at $20,538 on the Binance exchange.