Bitcoin gears up for a ‘massive’ short squeeze, price could go ‘vertical’

As Bitcoin (BTC) toes around the $70,000 price mark, there’s speculation that short-sellers are feeling the pressure due to diminishing downtrends and quicker-moving uptrends, potentially driving Bitcoin’s price to $80,000, according to an analyst.

“This is a textbook sign that shorts are being squeezed as we hit fresh all-time high territory,” trading resource The Kobeissi Letter stated in a March 26 X post.

The Kobeissi Letter explained the main factor for the BTC short squeeze is the margin between institutional long positions and hedge fund short positions is “at a record high.”

Institutions net long against hedge funds net short. Source: X/The Kobeissi Letter

“While hedge funds hold nearly 15,000 in net short contracts, institutions hold nearly 20,000 in net longs,” the post added.

Meanwhile, it noted that Bitcoin’s price dips “keep on getting shorter and shorter.”

Over the past seven days Bitcoin hit its lowest point at $61,224 on March 20 while reaching its peak at $71,511 on March 26, representing a gap of just 8.7%, per CoinMarketCap data.

Bitcoin’s current price is $70,480. If it reaches $71,000, $156.18 million in short positions will be liquidated, per CoinGlass data. A climb to $75,000 will liquidate $3.85 billion in short positions.

Crypto exchange Swyftx lead analyst Pav Hundal told Cointelegraph at this point, it might propel Bitcoin into unprecedented all-time highs. Currently, Bitcoin’s all time high is $73,737.

“The potential for a violent price action is off the charts right now. If we see a short squeeze, Bitcoin could go vertical to $80,000 and from there you really are starting to seriously think about the $100,000 point at some point this year,” Hundal said.

Asset managers with long exposure to BTC is at all-time highs. Source: Chicago Mercantile Exchange.

Swan Bitcoin CEO Cory Klippsten told Cointelegraph that while he enjoys watching the ongoing tug-of-war between long and short positions, eventually, one faction will crack.

“Somebody gotta break at some point, they are piling up more and more capital behind their views to try and defend it. It is fascinating, we…

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