Bitcoin Analyst Predicts ‘Big Short Contraction’


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Alex Dovbnya

Bitcoin remains in limbo after reclaiming the $20,000 level, but this analyst believes a short contraction is coming

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  • Don’t get too excited
  • Bitcoin remains in obscurity

Ki Young Joo, CEO of South Korea-based blockchain analytics company CryptoQuant, has foreseen that Bitcoin may soon experience a massive short.

CryptoQuant
Image from cryptoquant.com

He notes that many traders continue to accumulate short positions in late 2020 in the $10,000-$20,000 range, only to be wiped out later.

Short liquidations accounted for roughly 10% of hourly market buy orders as of June. Such a scenario could play out now, resulting in a short Bitcoin bump.

Don’t get too excited

The fact that Bitcoin could potentially experience another significant short contraction does not mean that it is about to start another bull cycle, according to Zhu.

However, this shows that the cryptocurrency is near the bottom. Bitcoin fell to $17,600 last month before seeing some relief.

It could take “several months or years” for another parabolic bull to begin. Brand predicts that the next Bitcoin “rocket” will start in 2024.

Bitcoin remains in obscurity

On July 13, the largest cryptocurrency managed to regain the $20,000 level, but market sentiment remains overwhelmingly bearish.

The “Fear and Greed Index” remains in “extreme fear” territory, according to the latest update.

A recent Bloomberg survey showed that most retail and institutional investors expect the largest cryptocurrency to fall to $10,000.

Some analysts believe that the Fed’s increasingly hawkish monetary policy. The central bank is now highly likely to announce a 100 basis point hike after the latest inflation data.

The top cryptocurrency is currently trading at $20,538 on the Binance exchange.

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