Analysts warned investors who opened short positions while stating that Bitcoin’s price could accelerate.
The price of Bitcoin has managed to stay above $70,000, bringing a new wave of upward momentum to the cryptocurrency market. Crypto analysts noted that the rises could accelerate from this point on and could catch the short traders in the market.
In a statement made by The Kobeissi Letter, it was argued that institutional funds’ long positions and hedge funds’ short positions could cause an increase in volatility by widening the gap between them.
According to the data provided by a news agency, hedge funds have approximately 15,000 net short contracts, while institutions have approximately 20,000 net long positions. This gap has been recorded as a historical level.
Furthermore, it was pointed out that the declines in Bitcoin are becoming increasingly short-term, indicating that the increases could consist of much faster and greater moves.
The Chief Analyst of the crypto exchange Swyftx, Pav Hundal, brought a different perspective to the issue, stating that Bitcoin is ready to perform a short squeeze and that after a sudden rise to $80,000, $100,000 could be seen shortly after:
There is currently the potential for a violent price movement outside the charts. If we see a short squeeze, Bitcoin could rise vertically to $80,000, and from there, we would seriously start considering $100,000 at some point this year.
