Ki Young Ju, CEO of South Korea-based on-chain analytics company CryptoQuant, of bitcoin He suggested he might see a big short squeeze soon.
Ki Young Ju noted that many investors continued to accumulate short positions between $10,000 and $20,000 in late 2020, but were later wiped out.
CryptoQuant CEO Expects A Big ‘Short Squeeze’ In Bitcoin (BTC)
The CEO also said that 10% of hourly buy orders on Bitcoin at that time were due to short liquidations, while today this rate is around 1%:
“I’m expecting a big ‘short squeeze’.
In late 2020, many continued to short BTC and were liquidated in the $10,000-20k range before the parabolic bull run began.
At that time, 10% of hourly market buy orders were coming from short liquidations. Now this rate is around 1%.”
However, CryptoQuant CEO explained that the short position squeeze he predicted does not mean that a new bull cycle will start for BTC.
Waiting for a big short squeeze.
In late 2020, many people kept punting short positions on $BTC and got liquidated in the $10k-20k range before the parabolic bull-run started.
Back then, 10% of hourly buy market orders were from short liquidations. Now, it’s around 1%. pic.twitter.com/tlVdw2RQHX
— Ki Young Ju (@ki_young_ju) July 14, 2022
However, according to the analyst, this may indicate that the Bitcoin price is close to bottoming out. last month cryptocurrency BTC price fell to $ 17,600 before a small recovery, with prices experiencing hard times.
The CEO ended his thoughts on Twitter as follows:
“To be clear, I did not say that the parabolic bull run is about to begin.
I’m just saying it looks close to bottom and it’s time to wait until this short squeeze thing happens. It could be a few months or years for the next parabolic bull run, we never know.”
*Short Squeeze (short position compression) occurs when the price of an asset rises rapidly because many short sellers have to close their positions.
*Not investment advice.