Is $160K Conservative for Bitcoin? BTC on the Verge of Another Breakout: Here’s Why
Bitcoin could see new ATHs by this year, but the on-going bullish momentum might put shorts in a bad position.
Recent projections from crypto analysts suggest that Bitcoin (BTC) could witness a substantial surge —while shorts will be met with a significant squeeze.
Analysts from the Kobeissi Letter believe short sellers might be in for a ride full of pressure.
As per an X post , Kobeissi shed light on the substantial gap between institutional long positions and hedge fund shorts; institutions are holding nearly 20,000 net long contracts compared to hedge funds’ approximately 15,000 net short contracts.
#Bitcoin may be setting up for a massive short squeeze:
Currently, the gap between institutional longs and hedge fund shorts is at a record high.
While hedge funds hold nearly 15,000 in net short contracts, institutions hold nearly 20,000 in net longs.
This is likely why price… pic.twitter.com/afhpsmJXNE
— The Kobeissi Letter (@KobeissiLetter) March 26, 2024
This margin could be the main catalyst for the BTC short squeeze, Kobeissi suggests. Continued upward pressure on Bitcoin’s price could force short sellers to cover their positions, further fueling the bullish momentum.
BTC at $160K is ‘Conservative’
Moreover, a popular pseudonymous trader known as Dave the Wave on X (formerly Twitter) tells his 143K followers that $160K for BTC could be rather conservative.
Dave bases his analysis on his own version of logarithmic growth channels (LGC), which he uses to predict market cycle tops and bottoms while filtering out short-term fluctuations and highlighting overarching trends.
According to his analysis, Bitcoin appears to be following a pattern reminiscent of 2020, characterized by a breakout from an ascending channel into a parabolic upward movement, resulting in a significant price surge of approximately 154%.
BTC’s Recent Recovery
At press time, Bitcoin had reclaimed the $70K level, a 14.2% recovery from last week. As CryptoPotato reported , interest from institutions and retail investors is growing again, which could mean more bullish momentum for BTC.
This came after last week’s massive outflows that pushed the cryptocurrency’s price south. The asset tumbled by more than twelve grand after its most recent ATH of $73,800 to a multi-week low of under $61,000. Nevertheless, BTC now stands above $70,000 and the community wonders if there will be a new ATH before the April halving.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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