đ Bitcoin short squeeze alarm! Will the market rebound sharply?
According to Bloomberg, K33 Research warned that the trend of the Bitcoin derivatives market shows that the risk of **"short squeeze"** is rising, which may create opportunities for a sharp rebound in Bitcoin.
đ Key indicator: Bitcoin perpetual futures funding rate - a barometer of market long and short sentiment. K33's analysis pointed out that the seven-day average annualized funding rate as of August 20 fell to the lowest level since March 2023, indicating that bearish sentiment in the market is dominant. At the same time, the surge in open interest shows aggressive short selling. This situation creates favorable conditions for short-term squeezes.
đ„ Once a short squeeze occurs, an unexpected price jump will force shorts to close their positions, further driving a rebound in Bitcoin prices. Although Bitcoin market sentiment has been low recently, such structural changes may bring about a dramatic turnaround.
â ïž Investors please pay close attention to market trends and guard against risks!
