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”
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