3 hours ago
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BULLISH 📈 : Bitcoin price rises as short squeeze potential increases
The price of Bitcoin saw a notable increase on February 13th, moving towards the $70,000 mark. Recent on-chain data suggests this may initiate a short-term rally.
Potential Short Squeeze
- The Bitcoin Funding Rate on Binance has dropped to its lowest in over a year, with a 14-day Simple Moving Average (SMA-14) of -0.002.
- A negative funding rate indicates that short traders are paying long traders, suggesting a bearish market sentiment.
- Historically, such deeply negative rates often precede a short squeeze, where a small price rise can lead to significant short position liquidations, pushing prices higher.
Market analyst CryptoOnchain notes that these conditions might signal an overcrowded short market, potentially leading to a price surge due to a short squeeze.
Current Bitcoin Price
- Bitcoin is currently priced around $69,000, up over 5% in the last 24 hours.
This situation sets the stage for potential upward movement as market dynamics shift.