{"id":392413,"date":"2022-01-11T12:17:50","date_gmt":"2022-01-11T09:17:50","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-returns-to-42k-as-bets-start-favoring-short-squeeze-higher-for-btc\/"},"modified":"2022-01-11T12:17:50","modified_gmt":"2022-01-11T09:17:50","slug":"bitcoin-returns-to-42k-as-bets-start-favoring-short-squeeze-higher-for-btc","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-returns-to-42k-as-bets-start-favoring-short-squeeze-higher-for-btc\/","title":{"rendered":"# Bitcoin returns to $42K as bets start favoring &#8216;short squeeze&#8217; higher for BTC"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a35ff77bac61\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a35ff77bac61\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-returns-to-42k-as-bets-start-favoring-short-squeeze-higher-for-btc\/#Short-term_squeeze_%E2%80%9Creasonably_likely%E2%80%9D\" >Short-term squeeze &#8220;reasonably likely&#8221;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-returns-to-42k-as-bets-start-favoring-short-squeeze-higher-for-btc\/#For_every_short_theres_a_long\" >For every short, there&#8217;s a long<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin returns to $42K as bets start favoring &#8216;short squeeze&#8217; higher for BTC <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Bitcoin (BTC) broke through $42,000 on Jan. 11 as expectations of a fresh &#8220;short squeeze&#8221; mounted.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/d88c87f2-bc10-4265-92ab-b55887fd3b2e.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Short-term_squeeze_%E2%80%9Creasonably_likely%E2%80%9D\"><\/span>Short-term squeeze &#8220;reasonably likely&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Data from Cointelegraph Markets Pro and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSD\/?exchange=BINANCE\">TradingView<\/a>\u00a0followed BTC\/USD as it recovered from Monday&#8217;s dip to $39,600 \u2014 its first breach of the $40,000 mark since September.<\/p>\n<p>While short-term bullish prognoses were conspicuously absent on the day, attention focused on the potential for derivatives markets to spark another &#8220;short squeeze.&#8221;<\/p>\n<p>With open interest near all-time highs despite the downturn and sentiment clearly favoring further downside, a surprise uptick could have the impact of &#8220;squeezing&#8221; short positions and providing some relief for bulls.<\/p>\n<p>As on-chain analytics firm Glassnode <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/insights.glassnode.com\/the-week-onchain-week-02-2022\/\">noted<\/a> in the latest edition of its weekly <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>letter, The Week Onchain, such an event is overdue. Longs have suffered almost constantly since November&#8217;s $69,000 all-time highs, and &#8220;squeezes&#8221; further occur when the market least expects a certain outcome.<\/p>\n<p>&#8220;Short traders, who have not been punished for taking on increasing risk, may find themselves candidates for a near-term squeeze,&#8221; researchers forecast.<\/p>\n<p>Such an event could well be amplified thanks to &#8220;tepid&#8221; demand for spot BTC and futures open interest leverage which is <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roaching 2% of the Bitcoin market cap, Glassnode continued.<\/p>\n<p>&#8220;Alongside very oversold indicators in on-chain spending activity, this suggests a short squeeze is actually a reasonably likely near-term resolution for the market,&#8221; the newsletter concluded. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/2df7abbd-26d9-4cd5-ae18-c78398921bcc.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin futures open interest leverage ratio annotated chart. Source: Glassnode<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"For_every_short_theres_a_long\"><\/span>For every short, there&#8217;s a long<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Analysts meanwhile considered alternatives to the high open interest being removed via another leg down towards $30,000.<\/p>\n<p><strong><em>Related: \u2018Most bullish macro backdrop in 75 years\u2019 \u2014 5 things to watch in Bitcoin this week<\/em><\/strong><\/p>\n<p>Despite no &#8220;wipeout&#8221; of open interest yet occurring, a surprise upside move could yet be the event that resets market composition, popular <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> account Credible Crypto argued on the day.<\/p>\n<p>&#8220;What if the major OI wipeout everyone is looking for ends up happening because of a squeeze to the upside rather than a move further down?&#8221; he <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CredibleCrypto\/status\/1480709148278988805\">quizzed<\/a> in response to data from fellow analyst William Clemente. <\/p>\n<blockquote><p>&#8220;Happened in August \u201821 as we moved off the 30K bottom. Think we probs see that play out again. Bears bout to be wiped clean.&#8221;<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/a622ceaf-6845-4e85-89ca-166098d6d8db.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin futures open interest chart (Binance). Source: Coinglass<\/em><\/figcaption><\/figure>\n<p>As Cointelegraph reported, $40,000\u00a0forms a significant price zone from multiple points over the past twelve months.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-returns-to-42k-as-bets-start-favoring-short-squeeze-higher-for-btc\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bitcoin returns to $42K as bets start favoring &#8216;short squeeze&#8217; higher for BTC &#8221; Bitcoin (BTC) broke through $42,000 on Jan. 11 as expectations of a fresh &#8220;short squeeze&#8221; mounted. BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView Short-term squeeze &#8220;reasonably likely&#8221; Data from Cointelegraph Markets Pro and TradingView\u00a0followed BTC\/USD as it recovered from Monday&#8217;s&#8230;<\/p>\n","protected":false},"author":1,"featured_media":392414,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvN2ExMDgxZDMtZmUyNC00NzFlLTlmZTMtZWY0NGMwOTgwNTZhLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74972,74937,73785],"class_list":["post-392413","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-futures","tag-bitcoin-price","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/392413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=392413"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/392413\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/392414"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=392413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=392413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=392413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}