$102K BTC price ‘short squeeze’? 5 things to know in Bitcoin this week

Key Points

  • Bitcoin's price inertia is causing nervousness among market participants, with attention focusing on a potential short squeeze.
  • Exchange flows indicate the beginning of a "bearish phase" for Bitcoin, despite positive investor confidence signals.
  • Unrealized profits suggest that a Bitcoin bull market top might be approaching.
  • Liquidity conditions are boosting hopes for a short squeeze, with traders setting long limit orders near key price levels.

Summary

Bitcoin's price has been stuck in a trading range, causing traders to grow increasingly anxious about potential movements. The market is particularly focused on the possibility of a short squeeze, especially with the upcoming release of Federal Reserve minutes and ongoing concerns about U.S. inflation. Despite a month-long pause in the bull market, demand for Bitcoin remains high, suggesting strong investor confidence. However, exchange flows are signaling the start of a bearish phase, with significant Bitcoin transfers moving from derivative to spot exchanges, indicating a reduction in risk exposure by large investors. Additionally, unrealized profits among long-term holders are nearing levels historically associated with market tops, adding to the speculation about the sustainability of the current bull run. Traders are cautiously optimistic, setting long positions near key support levels while preparing for potential volatility.

cointelegraph
February 17, 2025
Crypto
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