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Bitcoin has seen incredible price momentum over the past two weeks. This momentum, which surprised many, led to Bitcoin breaking higher Psychological price level $65,000 once again. According to price data, Bitcoin traded as low as $52,820 on September 6.
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Its recent rebound to $66,300 indicates that the crypto king has made a significant recovery of 25.5% in two weeks. according to Coinglas dataand this represents The biggest gains recorded by Bitcoin in September Since 2013.
However, despite this impressive rise, a large number of traders continue to bet against Bitcoin. This continuing trend has paved the way for a potential short squeeze, which could send the coin’s price to all-time highs in October. Here’s a closer look at how this happened and what could unfold next.
Short positions dominate the stock market
According to cryptocurrency analyst Ali Martinez, who shared his thoughts on social media platform X, 57.77% of Binance users with open positions are shorting Bitcoin. This means that many traders are betting that the price of Bitcoin will fall, even as it maintains strong upward momentum.
57.77% of @binance Users with open positions are selling short #Bitcoin! pic.twitter.com/bWQ4d5n6MJ
– Ali (@ali_charts) September 27, 2024
However, given… Institutional flow and whale to bitcoin, Especially through Spot Bitcoin ETFsBitcoin is still in a position to continue the uptrend next week. The combination of these inflows and the large volume of short positions creates the potential for a short squeeze as we move into October.
As September comes to a close, many traders are keeping an eye on October, a historically bullish month for BTC (Uptober). Bitcoin has happened many times Good performance in the fourth quartera time when the industry typically sees increased buying pressure and institutional inflows. Such a short squeeze could push the cryptocurrency’s price beyond its previous all-time high of $73,737 and into new price zones.
Bitcoin: Short-Term Correction on the Horizon?
While the forecast for BTC is generally bullish, There too Possibility of correction in the short term Prices in the coming days. The TD Sequential indicator, a popular tool used by traders to identify potential price reversals, showed a sell signal on the 4-hour chart. And this was the phenomenon Ali Martinez pointed outWhich suggests that Bitcoin may see a brief pullback before resuming its upward trajectory.
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Such a correction would act as a consolidation phase after two weeks of upward price movement, giving the market time to reset before the next big move. Following this trend, it will also likely incentivize more traders to sell short, increasing the likelihood of greater selling pressure when Bitcoin rebounds.
At the time of writing, Bitcoin is trading at $65,658.
Featured image from CNBC, chart from TradingView
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