Cryptocurrency

Bitcoin

Bitcoin (BTC) price broke the $42,000 mark on Monday and today broke through $44,000 for the first time in over a year, prompting the liquidation of a significant number of leveraged positions.
BTCM Chief Economist Youwei Yang identified $45,000 as the next key resistance level for Bitcoin, suggesting that the likelihood of a short squeeze increases above this threshold. “Bears may face the risk of a short squeeze if Bitcoin breaks above $45,000, the next important resistance level,” Yang said.
A short squeeze is defined as a market event that triggers a rapid rise in prices in a stock or any asset. It typically occurs when the asset is significantly shorted, meaning many investors are betting that its price will fall.
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Yang also noted existing highly leveraged positions that could be reset if the market becomes increasingly volatile. “There is currently a possibility of higher market volatility, such as both a short squeeze and long liquidation at the same time in a short period of time,” Yang added.
Bitfinex analysts, on the other hand, highlighted two Bitcoin price levels that saw significant liquidations due to recent fluctuations in the market and said: “We can currently see large short liquidations at $ 41,950 and then at $ 42,200.”
Analysts had suggested that above these levels, the Bitcoin price could experience a “bullish breakout” due to forced liquidations that short investors are forced to buy to close their trades.
*This is not investment advice.
 Continue Reading: <a href="https://en.bitcoinsistemi.com/critical-short-squeeze-alert-in-bitcoin-btc-chief-economist-warns/" rel="noopener noreferrer nofollow">Critical Short Squeeze Alert in Bitcoin (BTC): Chief Economist Warns</a>

Critical Short Squeeze Alert in Bitcoin (BTC): Chief Economist Warns

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