Ki Young Ju, CEO of on-chain data platform CryptoQuant, made a controversial comment on his Twitter account. “It looks like we're nearing the bottom now,” Young Ju said.
Ki Young Ju, who actively uses his Twitter account and regularly shares many ideas about the course of cryptocurrencies with his followers, stated that he expects a short squeeze in the coming period.
Stating that before the bull movement started in late 2020, many investors opened short positions in Bitcoin, Young Ju said:
“At the end of 2020, many people opened short positions in Bitcoin and were liquidated at levels between $10,000 and $20,000. Then a parabolic bull run started. At that time, 10% of hourly market buy orders were coming from short position liquidations. Now that number is 1%."
After the reactions and comments, Young Ju, who sent another tweet, stated that he did not claim that a bull rally would come:
"To be frank, I didn't say a parabolic bull run would begin. It just looks like we're nearing bottom. Right now we just have to wait for the 'short squeeze' to start. The next parabolic bull run may be months or years away. We'll never know."
Young Ju, whose tweet received a lot of interaction, did not predict when the "short squeeze" movement might begin.
Bitcoin dropped as low as $17,600 last month before seeing a slight relief rally and has been trying to recover ever since. Many market experts believe that it may take several months or years for a new parabolic bull run to begin.
The biggest cryptocurrency surprisingly managed to surpass the $20,000 mark on July 13, but the market sentiment remains overwhelmingly downtrend. The "Fear and Greed Index" remains in the extreme fear zone according to the latest update.
With all this, a recent Bloomberg survey revealed that most retail and institutional investors expect Bitcoin to drop as low as $10,000. Some analysts have focused on bearish price movements with the expectation that the Fed will become increasingly hawkish and adopt an aggressive monetary policy. Especially after the latest inflation data, it is highly likely that the Fed will increase interest rates by 100 basis points this month and this will shake the BTC price.