Bitcoin positioned for a bullish breakout, says CryptoQuant CEO

Bitcoin positioned for a bullish breakout, says CryptoQuant CEO - generic photo 165948On its third day of growth, the price of bitcoin withstood the initial bearish momentum triggered by rising US inflation rates. At the moment, BTC is trying to break out of the $ 21.000 resistance.

Against this backdrop, the CEO of analytics firm CryptoQuant, Ki Young Ju, warned in a tweet that traders' short positions could be liquidated. In this way, he predicts a short squeeze, or strangulation of such positions, like the one that occurred in December 2020, after which there was a significant increase in prices. This rally was very noticeable, as the all-time high of December 2017 and the $ 20.000 mark was breached at that time.

Although the occurrence of short liquidations usually occurs in the midst of a bull run, the current bitcoin price trend is quite moderate compared to what happened at the end of 2020. That year, the bullish sentiment was driven by increasing support. institutional to bitcoin.

On the other hand, bitcoin's rally in July of this year is miniscule compared to the more than 70% drop the first cryptocurrency recorded from its all-time high in November 2021.

However, Young Ju mentions the possibility of “parabolic growth”, as growth above a linear price boom is called. “Great short squeeze is expected. At the end of 2020, many people continued to bet on short positions in $ BTC and were liquidated in the $ 10.000-20.000 range before the parabolic bull run began, ”the executive says in his tweet.

However, the executive is cautious about when the bullish breakout will occur. In a subsequent tweet he claims he has no elements to pinpoint a specific date.

Settlements in decline

At the moment, the size of liquidations is declining, both for short positions and for those betting on price rallies. This situation reflects the relative calm of the markets, where the technical parameters are in equilibrium between offers to buy and to sell.

As can be seen in the chart, cryptocurrency settlements are very close to the lows of the last 90 days. Settlements on Thursday 14 July totaled $ 20,4 million, including $ 15,2 million of short positions.

The highest settlements occurred last June. On June 12 alone, positions of $ 562 million were liquidated, of which $ 218,3 million, or 38,9%, were short positions. Of those who bet on price increases, $ 343,6 million was cleared that day.

Among the reasons that could push the price of bitcoin are the acquisitions of BTC that different categories of holders have made in recent weeks.

The so-called "bitcoin sharks", that is the holders of a number of BTC between 10 and 100, have bought more than 50.000 BTC in the last 5 weeks. Furthermore, bitcoin miners, who usually fall into the category of whales, i.e. holders of over 1.000 BTC, have started to accumulate this cryptocurrency. And you have already used it Bitcoin Pro to trade BTC?

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