Bitcoin’s Price Puzzle: A Squeeze on the Horizon?
According to popular crypto analyst Willy Woo, on-chain data suggests that Bitcoin (BTC) might be in the early stages of a price squeeze.
Woo believes that a potential short squeeze could be on the horizon for BTC. In a short squeeze, traders who had bet against the asset decide to cut their losses when the price unexpectedly rises, leading to additional upward momentum.
Woo points out that the recent price action of BTC has been predominantly driven by demand from calendar futures markets, which professionals and institutions primarily use.
He notes that the demand for Bitcoin continues to surge, indicating that another price squeeze could be underway.
Price action has largely been dominated by demand stemming from the calendar futures markets, the instrument of pros and institutions.
Even now, demand keeps surging, suggesting we are in the early stages of another price squeeze. pic.twitter.com/04SM6yhvr5
— Willy Woo (@woonomic) July 4, 2023
However, Woo also highlights that not all Bitcoin metrics are showing entirely positive signs.
And the flipside: Calendar demand is overbought under statistical analysis.
It’ll be important to keep a close eye on basis waning. It could leave quite fast, rugging the bullish price action. pic.twitter.com/HEmTFortxR
— Willy Woo (@woonomic) July 4, 2023
He mentions that the statistical analysis reveals an overbought condition in calendar demand.
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It is important to closely monitor the decline in basis, which represents the cost of maintaining a long position. A rapid decrease in basis could disrupt the bullish price movement.
At the time of writing, BTC is trading at $31,150. Although it has experienced a 0.88% decline in the past 24 hours, it has shown a gain of more than 1.2% over the past week, making it the top-ranked cryptocurrency by market capitalization.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
