Bitcoin (BTC) dropped to around $117,000 (approximately 162.63 million won) before quickly rebounding, drawing market attention back to the potential for a short squeeze. After long positions were massively liquidated the previous day, inducing short positions, warnings are now being raised about excessive short positions.
Market participants are noting the rapid increase in sell positions near the price, based on liquidity data stacked in exchange order books. As Bitcoin's price quickly recovered after a sharp decline, some experts are predicting a large-scale short squeeze rally may soon unfold. This flow is a typical 'long-short position change game', where longs are liquidated during a decline, followed by a rise that catches short positions off guard.
Simultaneously, Bitcoin is showing signs of recovering its market dominance by raising its overall cryptocurrency market share. Bitcoin, which had recently ceded some market leadership while altcoins gained attention, appears to be positioning itself back at the center.
A combination of complex factors, including exchange spot market liquidity and derivative position changes, suggests a strong counterattack against short positions is likely in the near term. Particularly, recently entered short positions could generate powerful buying pressure proportional to their scale if prices begin to rise significantly. Investors need to closely monitor Bitcoin's price movements and market reactions.
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