5% Spike in Bitcoin in One Day! Is The Dread Finally Over?

Bitcoin

Bitcoin Bitcoin price increased by 5% which signaled that the parabolic bull ran on the way

The global digital asset market saw little price movement following the release of much-anticipated US CPI data. Bitcoin (BTC) has recovered to trade above the $20K mark. However, a crypto analyst believes that a large short squeeze is imminent.

 

Is a big short squeeze on the way?

Ki Young Ju, CEO of CryptoQuant, stated in a tweet that traders continued to take short positions on Bitcoin in 2020. This resulted in a liquidation near the $10-20K price range, just before the parabolic bull run began. He emphasized that at the time, short liquidations accounted for only 10% of hourly buy market orders. Meanwhile, it has dropped to just 1%.

Approximately $193 million in liquidation has been recorded during the same period. Over $53 million in Bitcoin has been liquidated. Bitcoin prices have risen by more than 5% in the last 24 hours. At the time of publication, it was trading at an average price of USD 20,907. However, BTC’s 24-hour trading volume has increased by 10% to $38 billion.

Meanwhile, Young Ju has clarified that the parabolic bull run has not yet begun. He mentioned that it appears to be near the bottom. However, investors and traders must wait for this short squeeze event to occur. He went on to say that this could happen in a matter of months or even years.

 

Bitcoin being sold by institutional investors?

CryptoQuant published a blog about the general market sentiment in the US Spot and Futures markets. It stated that the Coinbase crypto exchange is used by the majority of institutional investors, market makers, and brokerage firms. The price of Bitcoin is lower on Coinbase than it is on other exchanges. This suggests that these institutional investors in the United States are selling. However, bullish sentiment among future market investors is on the rise. According to the blog, Taker’s buy volume is outperforming Taker’s cell volume.