Bitcoin Short Squeeze: A Signal for a Strong Rebound After Christmas?
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Bitcoin [BTC] has recently attracted significant market attention. In the past 24 hours, the price of Bitcoin has increased by 4.16%, currently trading at approximately $98,056. On Christmas Eve, Bitcoin quickly rebounded from a low of $93,461 to a high of $99,419. With this increase, the market is filled with expectations for price trends after Christmas.
Market Status: Formation of a Short Squeeze
Analysis indicates that there may be a potential short squeeze on the Bitcoin market's horizon. This situation typically occurs when the demand for short positions surges, leading to buying pressure as shorts are covered, accelerating price increases.
Cryptoquant analyst Traders Oasis points out that Bitcoin has been consolidating recently due to insufficient institutional demand during the adjustment period. However, several factors support a rebound trend in the future:
Improvement in the Coinbase Premium Index:
This index has gradually risen from negative values, indicating increased market confidence. The negative value area often represents potential entry points for institutional investors.
Changes in Funding Rates and Open Interest:
Funding rates have decreased while open interest has increased, showing that more investors are positioning for short positions. This market structure may provide conditions for a short squeeze.
BTC Fund Flow Ratio Fax:
The BTC fund flow ratio has risen from 0.084 to 0.137, indicating more funds flowing into Bitcoin. Increased fund flow often accompanies stronger buying pressure, thereby supporting price increases.
From a technical perspective, the current price structure supports further increases in Bitcoin above $100,000:
Resistance Level: $99,419 is a key resistance level in the short term.
Once broken, Bitcoin may further test the $102,000 area.
Support Level: $93,000 is an important support point within the current consolidation range.
Technical Indicators: RSI shows strong buying momentum but is approaching the overbought area.
MA moving averages support the current upward trend.
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