After a tumultuous week, the Bitcoin price starts to find its foot again, and rises from great support around the $ 115,000 level. Currently, the Pioneer Cryptocurrency seems to be on the path of recovery and Possibly on the way to new highlights Momentum is picking up this week. There is also the possibility of a coming short squeeze, as explained by crypto analyst Luca on X, with the help of recent developments that show that the recent crash might only have been temporary.
Bitcoin shows the tendency to cross again $ 123,000
In an X -Post, Luca pointed On the Bitcoin market makers such as those behind the recent price movements and that was a reason for this. The Initial movement down Seemed an attempt to rinse late lungs when crypto-traders tried to take advantage of the frenzy created by the new all-time highlights.
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Then a reversal in the works, catching shorters who are not aware and wiping liquidity at support levels. This is because bears were drawn into a false sense of security, convincing that the price would continue to fall before it was hit with the step back above $ 118,000, so that hundreds of millions of dollars in liquidations are activated.
This all happens at a time when things such as the Bitcoin financing figure fell. Coinglass -Data to show The Bitcoin OI-weighted financing percentage had fallen shortly below 0.01% on Sunday after he was reached earlier in the week on July 23 to 0.0167%. Luca further revealed that the de Bitcoin Premium Metriek Had also fallen back in the negative.
Another interesting fact was the fact that the open interest had boosted when the Bitcoin prize had fallen. Once the price began to recover, the open interest started to rise again and Luca interprets this as short positions that are starting to be pressed. If this squeeze continues, the Bitcoin price can spijken very quickly, so that tens of thousands of short positions are taken.
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BTC Open Interest tells a story about lighting
Since the Bitcoin price is bounced between $ 115,000 and $ 120,000, the BTC Open interest has noticed in response. In fact, this metric is high all time, so that market uncertainty is shaken off while crypto-traders continue to open positions to bet on Bitcoin’s next step.
The Open interest had hit $ 87.89 billion Back on July 15, and since then it is more than $ 80 billion on average every day. In the midst of this, the Binance long/short ratio to show That Shorters currently dominates with 53.97% compared to 46.03% for long accounts. This means that Luca’s expectations that the market could see a short squeeze to eliminate Shorters and push the price to new of all time.
Featured image of dall.e, graph of tradingview.com