Unable to turn its momentum north for about two months, Bitcoin is trading at the $42,000 limit after retesting $40500.
It is observed that the volume has decreased due to the weekend. Of course, investors who do not want to wake up to a bloody Monday and wait for tomorrow also have an effect on this.
"We may see a potential short squeeze going forward." said data analytics company IntoTheBlock, sharing a chart showing the ratio of open interest to market value.
Judging by the shared chart, an increase in the ratio as the price rises indicates a correction to squeeze the longs. Inversely proportional to this, while the price decreases, the increase in the rate triggers a rise to tighten the shorts.
While the price of Bitcoin fell to the levels of $ 40,000, the ratio of open positions to market value reached the highest level of the last 1 year. When we look at the similar movement in July, this data gives us a signal that we may be at a potential bottom and a rise may come to squeeze the shorts.
However, it is useful to approach this data with caution. Because, according to the data provided by Glassnode, the funding rate in the market shows that long positions are still higher.
According to the result when the two data are evaluated together; "There may be drastic moves up and down to tighten both longs and shorts in the coming days." conclusion can be drawn. Therefore, it may be a little more important this week to stay away from high leverage and not panic trade.
Latest Status in Bitcoin
Bitcoin price today is $42,083.88 with a 24-hour volume of $21,825,867,408. The price has increased by 2.4% in the last 24 hours. There is a circulating supply of 19 Million BTC coins, with a total supply of 21 Million coins.