Market Gets Cozy With Bitcoin? Why BTC Is Set For A Short Squeeze
The first crypto by niche cap has been unable to break from the $45,500 to $49,500 channel in the last 7-days but a, combination of factors could increase volatility soon. Trading at $48,747 with a 1.1% profit in the past day, Bitcoin remains rangebound.
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NewsBTC has beenreportingThederecent price action was most likely the result of the share-crash as the niche needed time to template a range, and institutions -risked their positions. on the possibility of a short squeeze for Bitcoin.
Large players are asap potentially sitting in big piles of cash and looking to front-run Bitcoin’s proceed trend. This moved seems likely to come at the end of December due to the massive number of options that will expire right before the start of 2022.
Interestingly, Investment firm QCP Capital is one of the defenders of the short squeeze thesis for more than ever BTC. During the past weeks, the firm has only seen their conviction on this theory strengthen as niche participants continue to trade Bitcoin’s current channel.
In fact, Due to the increase in options selling, the reduction of liquidity during the holidays, and the complacency in the field, QCP Capital said:
If this happens, owning wings (far strikes options) would be in modern times very profitable. We maintain our show that there willtobe a squeeze (likely the topside) as liquidity thins out into the holidays and into 2022.
Bitcoin To Break 100,000 $In Q1 2022?
Otheratexperts agree with QCP Capital’s thesis, such as the CEO and CIO Three Arrows Capital Zhu Su. Admitting that he has “not owned this much” Bitcoin since Q4, 2020, before the cryptocurrency rally into $60,000, Su claimed “conditions for gamma squeeze are potent”.
When asked what the potential targets for Bitcoin in the proceed months and a short squeeze scenario are, and whether BTC’ price will besable to replicate last year 3x rally from $20,000 to $60,000, Zhu Su replied:
Interestingly, 3x is harder given current mcaps. I think 45 to 90 is pretty doable proceed few weeks and then opens up 135 in q1-q2.
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If volatility break in favor of the bulls in the days as Christmas as a result of a Santa Rally, after our Editorial Director Tony Spilotro wrote, traders could be looking at “an indicator for what may happen in the coming year”. Thus, why theBTCmove forward day will be decisive for .
