Bitcoin is Very Close to Short Squeeze – What Next For BTC Price?

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The Bitcoin market has consolidated around $28k in the past three weeks. The indecisive state in the Bitcoin market has kept most traders aside awaiting a solid breakout. Moreover, crypto liquidations have significantly reduced with the total amount of capital rekt in the Bitcoin market today standing around $24 million. With a market capitalization of approximately $542 billion and a daily traded volume of about $14.69 billion, it is evident most crypto investors are holders and trade in the P2P or B2B sectors.

John Bollinger on Bitcoin Price Action

As a veteran trader who is respected for creating an indicator that is widely adopted, Bollinger has over time issued several predictions on the Bitcoin market. In the latest update, Bollinger was commenting on a tweet by Bob Loukas, a cyclic position trader. Loukas highlighted that Bitcoin is gathering momentum and could break out before the end of this week. 

In response, Bollinger stated that the Bitcoin market is very close to a short squeeze. Notably, a short squeeze is a market phenomenon in which underlying asset value rises suddenly as short sellers exit positions to buy the same asset.

Mid-last month, Bollinger noted that Bitcoin price had been significantly boosted by the banking crisis that led to a flight to quality.

Market Outlook

The Bitcoin market has remained above crucial technical support levels despite the pressure from the weekly 50 and 200 MA death cross. As altcoins led by Ethereum show signs of an imminent breakout, crypto analysts forecast cash flow will move from Bitcoin to the alt industry. Moreover, the on-chain intelligence platform Santiment has identified an increase in Ethereum whales over the centralized exchanges’ balance.