2024

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Bitcoin

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<div class="finbold">
 <p class="paragraph">Bitcoin (BTC) has recently rallied to the $72,000 resistance of a 3-month price range and suddenly dropped back to $67,000. This volatility created imbalances in the derivatives market, now weighted toward Bitcoin short-sellers, possibly leading to an impending short squeeze.</p>
 <p class="paragraph">Notably, since late February, Bitcoin has kept the $12,000 price range from $60,000 to $72,000. In the meantime, two deviations from the range marked a rally to $73,805 for a new all-time high and a sudden crash to $56,537.</p>
 <p class="paragraph">On May 21, the leading cryptocurrency precisely reached $72,000 again, and Bitcoin short-sellers jumped in betting in the pattern. As developed, BTC indeed respected the 3-month range and currently lost 6.4% from this level, trading at $67,315.</p>
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 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="662" src="https://cdn.thebittimes.com/images/2024/05/24/c5616069c95eadd29e6f387ff1c83ab5.webp" alt="" class="wp-image-178132" srcset="https://cdn.thebittimes.com/images/2024/05/24/c5616069c95eadd29e6f387ff1c83ab5.webp 1024w, https://cdn.thebittimes.com/images/2024/05/24/c5616069c95eadd29e6f387ff1c83ab5.webp 300w, https://cdn.thebittimes.com/images/2024/05/24/c5616069c95eadd29e6f387ff1c83ab5.webp 768w, https://cdn.thebittimes.com/images/2024/05/24/c5616069c95eadd29e6f387ff1c83ab5.webp 1536w, https://cdn.thebittimes.com/images/2024/05/24/c5616069c95eadd29e6f387ff1c83ab5.webp 1875w" sizes="(max-width: 1024px) 100vw, 1024px">
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   BTC/USD, daily price chart. Source: <em>TradingView</em>
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 <h2 class="wp-block-heading" id="h-<a rel=" dofollow title="short" href="https://thebittimes.com/tag/short.html" rel="noopener noreferrer nofollow">short-<a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a>-target-over-bitcoin-<a rel="noopener noreferrer nofollow" title="short-sellers" href="https://thebittimes.com/tag/short-sellers.html">short-sellers</a>-positions"&gt;Short <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> target over Bitcoin <a rel="noopener noreferrer nofollow" title="short-sellers" href="https://thebittimes.com/tag/short-sellers.html">short-sellers</a> positions</h2>
 <p class="paragraph">However, such activity could make the <a rel="noopener noreferrer nofollow" title="short-sellers" href="https://thebittimes.com/tag/short-sellers.html">short-sellers</a> a target, as Bitcoin’s future contracts and leverage trading accumulate liquidations upwards. Should these liquidity pools become a target, BTC could face a <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> in the coming days.</p>
 <p class="paragraph">Finbold gathered data from <em>CoinGlass</em> on May 24 to gain insights into the current state of the derivatives market.</p>
 <p class="paragraph">In particular, over $1.2 billion of liquidations have accumulated in the $72,000 range resistance. Market makers and professional traders could see this as an opportunity to encounter fuel for a possible range breakout.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="531" src="https://cdn.thebittimes.com/images/2024/05/24/e94d6900d0a907534e0f781eeb4254fc.webp" alt="" class="wp-image-178134" srcset="https://cdn.thebittimes.com/images/2024/05/24/e94d6900d0a907534e0f781eeb4254fc.webp 1024w, https://cdn.thebittimes.com/images/2024/05/24/e94d6900d0a907534e0f781eeb4254fc.webp 300w, https://cdn.thebittimes.com/images/2024/05/24/e94d6900d0a907534e0f781eeb4254fc.webp 768w, https://cdn.thebittimes.com/images/2024/05/24/e94d6900d0a907534e0f781eeb4254fc.webp 1536w, https://cdn.thebittimes.com/images/2024/05/24/e94d6900d0a907534e0f781eeb4254fc.webp 1840w" sizes="(max-width: 1024px) 100vw, 1024px">
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   BTC Liquidation Heatmap, 1 week. Source: <em>CoinGlass</em>
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 <p class="paragraph">This is because of the threat of a <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a>, which would liquidate these <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a>-seller’s positions and create artificial demand, pumping Bitcoin’s price above its current all-time high.</p>
 <p class="paragraph">On the other hand, cryptocurrency traders constantly reevaluate their positions as the market changes. Therefore, if traders close their short positions, this reported liquidity pool could no longer exist in the following days.</p>
 <h2 class="wp-block-heading" id="bitcoin-whale-activity">Bitcoin whale activity</h2>
 <p class="paragraph">As a validation of a possible short squeeze, <em>Ali Martinez</em> reported an increased Bitcoin whale activity with a bullish bias. According to Martinez, these whales bought the dip to $67,000 for 20,000 BTC purchased, worth $1.34 billion.</p>
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    <p lang="en" dir="ltr">#Bitcoin whales are buying the dip! These large #BTC holders have purchased over 20,000 $BTC in the last 24 hours, worth $1.34 billion, as prices dropped below $67,000. pic.twitter.com/8CNXkhZeZK</p>— Ali (@ali_charts) May 24, 2024
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 <p class="paragraph">The positive sentiment could propel Bitcoin short-sellers future liquidation as the spot market could face a supply shock. Nevertheless, investors should remain cautious and avoid overexposure to cryptocurrencies, considering their inherent risks and volatility.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/short-squeeze-alert-bitcoin-short-sellers-could-fuel-another-rally-tbt89585.html">https://thebittimes.com/short-squeeze-alert-bitcoin-short-sellers-could-fuel-another-rally-tbt89585.html</a></p>

Short squeeze alert: Bitcoin short-sellers could fuel another rally

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