Bitcoin Short Squeeze Is Building Up, BTC Inches Back Above $48,500
The world’s largest cryptocurrency Bitcoin has been showing volatile price swings in recent times. After falling under $46,000 on Monday, December 20, the BTC price has bounced back moving past $48,500 levels once again.
As of press time, Bitcoin is trading 3.66% up at a price of $48,610 and a market cap of $918 billion. Popular market analyst Will Clemente notes that a Bitcoin short squeeze is building up slowly similar to the one we saw in mid-July. However, for a clear indication of the next upward momentum, Will is still awaiting the high-time frame (HTF) trigger at $53,000 levels on a closing basis.
Still waiting for HTF trigger at $53K close, but feels like a short squeeze is building. Just give some more negative funding. pic.twitter.com/oc9aKQmNmY
— Will Clemente (@WClementeIII) December 21, 2021
A short squeeze is a condition when there are an unusual number of short-seller holding positions and usually results in rapidly rising prices of a tradable asset, in our case it’s Bitcoin. However, for clear signs of a Bitcoin short squeeze, the funding rates need to turn negative and we are yet not there still.
It is too early to say anything at this point whether today’s price surge represents a trend reversal from the downfall.
Bitcoin Price Surges Back Above $48,500 Levels
The Bitcoin price volatility has kept traders on the hook who are watching technicals with a hawks-eye. As per the recent price action, BTC has given an upward breakout on the descending pattern, however, it remains to be seen how long it can sustain it.
— Benjamin Cowen (@intocryptoverse) December 21, 2021
In one of his latest YouTube videos, Benjamin further explains that if Bitcoin RSI levels too manage to break the descending pattern, we can probably see Bitcoin breaking its downtrend and heading northwards.
The recent Bitcoin price volatility has confused retail investors about when could be the right time to enter the space. For the month of December 2021, Bitcoin is already down by around 20% as investors await the Santa rally. Some analysts also believe that the Bitcoin bull run will extend further into Q1-Q2 2022.
- John Bollinger Sees ‘W’ Bottom Forming in Ethereum and Solana, Not Bitcoin
- Robert Kiyosaki Calls Bitcoin and Ethereum ‘Real Money,’ Urges Investors to Ditch ‘Fake’ Fiat
- ‘Sell Gold, Buy Bitcoin’: Expert Flags Major Market Bottom Signal
- Ripple Makes ‘Unusual’ $500M Transfer Amid $1 Billion XRP Treasury Plans
- ‘I’m Going Bonkers’: Dave Portnoy Says He’ll Buy XRP Again If It Dips Below This Level
- Solana Price Prediction: Analyst Notes Bearish Breakdown Amid Derivatives Slowdown
- Shiba Inu Price Eyes Recovery as Burn Rate Jumps 10,785% – Can SHIB Hit $0.000016?
- Ethereum (ETH) Price Prediction: Analyst Eyes $7,000 by Q4 as Bitmine Accumulates $281M ETH — Will History Repeat Itself?
- HYPE Price Teeters Amid Weak Technicals and Soaring Liquidations
- XRP Price Prediction As Ripple Announces $1B Treasury Plans – Is a Rebound Imminent?
- Bitcoin Price Prediction Amid Gold’s Parabolic Rally to Second-Largest Reserve Asset
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
