Are You Ready For Bitcoin Short Squeeze? Here’s What They’ll Be!

Bitcoin could be hinting at lower levels during today's trading session. Investors are taking a large amount of long positions...
 Are You Ready For Bitcoin Short Squeeze?  Here’s What They’ll Be!
READING NOW Are You Ready For Bitcoin Short Squeeze? Here’s What They’ll Be!

Bitcoin (BTC) may be hinting at lower levels during today’s trading session. The leading crypto was rejected near $48,000 and failed to retrace its previous highs.

Bitcoin nears bearish end stop

Data from the Material Indicator is recording little support as BTC price moves in a tight range between $42,500 and $43,500. Bitcoin is losing bid orders that could absorb future downward price action. As the chart below shows, BTC has around $10 million in bid orders drawn while trending downwards. This liquidity appears to be distributed between $42,000, $41,500 and $41,000 and this could stand as the last line of defense against a new attack by the bears, according to analyst Reynaldo Marquez.

The chart also shows how a business places strategic demand orders when the price of BTC tries to regain its previous levels. This happened as investors with around $100,000 in demand orders pushed the price of BTC back to $40,000. In the current price action, it looks like retail traders are the most selling, and traders demanding orders of around $10,000 (yellow and red in the chart below). Only traders with bid orders around $1,000 (green on the chart) show interest in buying the BTC price.

The above shows a potential major asset trying to push the price of BTC down in order to accumulate BTC at optimal levels. The liquidity distribution first concentrated at $42,000 and then spread between those levels and $40,000, which seems to support this thesis. BTC whales often use this method to trap individual sales and gain liquidity to take their positions. As a result, small investors seem to have taken the bait.

Are you ready for a short squeeze?

Ali Martinez, whose analysis we have shared as Kriptokoin.com, has detected an increase in the number of long positions taken on the Binance stock market. The Long/Short ratio is 70% for long position traders and 29% for trade counterparty. On the possible effects of the BTC price, the analyst says:

Bitcoin may be preparing for a cascade of liquidation! 70.69% of all trading accounts on Binance Futures are currently net long-term BTC, which could result in a prolonged squeeze. BTC could drop to $42,000-41,000 to gather liquidity.

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