Bitcoin returns to $42K as bets start favoring ‘short squeeze’ higher for BTC

Bitcoin returns to $42K as bets start favoring ‘short squeeze’ higher for BTC


Bitcoin (BTC) broke through $42,000 on Jan. 11 as expectations of a fresh “short squeeze” mounted.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewShort-term squeeze “reasonably likely”

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it recovered from Monday’s dip to $39,600 — its first breach of the $40,000 mark since September.

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While short-term bullish prognoses were conspicuously absent on the day, attention focused on the potential for derivatives markets to spark another “short squeeze.”

With open interest near all-time highs despite the downturn and sentiment clearly favoring further downside, a surprise uptick could have the impact of “squeezing” short positions and providing some relief for bulls.

As on-chain analytics firm Glassnode noted in the latest edition of its weekly newsletter, “The Week On-Chain,” such an event is overdue. Longs

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