- A crypto analyst believes BTC’s price could once again surge like it did after the Covid crash.
- CryptoQuant’s CEO does not share this sentiment and does not believe BTC’s short squeeze has happened yet.
- At press time, BTC was trading at $26,587.03 following a more than 4% price increase.
A crypto analyst shared a post on Twitter yesterday speculating about what the price of the crypto market leader, Bitcoin (BTC), could do next. According to the post, the analyst believes that there are certain similarities on BTC’s chart now compared to 2020.
The analyst drew similarities between the Covid crash in 2020 and the recent turmoil in the market following the SEC crackdowns on multiple crypto exchanges. This ended up resulting in the prices of many cryptocurrencies, including BTC, dropping significantly.
The post also highlights the fact that there was a huge increase in the price of BTC after the Covid crash. The analyst seems to imply that this could once again be the case for BTC in the near future.
On the other hand, the CEO of CryptoQuant, Ki Young Ju, also took to Twitter to share his expectations for the BTC price. In contrast to the first analyst, the CEO was not convinced that BTC’s short squeeze had happened yet.
A short squeeze happens when the price of a cryptocurrency starts rising instead of falling. As the price rises, traders who have short positions face increasing losses. To limit their losses, they need to buy back the cryptocurrency to close their short positions.
However, if many traders are in short positions and they all rush to buy the cryptocurrency at the same time, it can create a surge in demand, driving the price even higher. Since Ju believes this is not the case for BTC, the CEO likely believes BTC’s price won’t surge anytime soon.
This is emphasised in the fact that he believed the most perpetual swap buying volume came from “pure” BTC purchases, and not from short liquidations. The market leader did, however, see a price increase over the past 24 hours of trading.
According to CoinMarketCap, BTC was worth about $26,587.03 at press time after the crypto saw a price rise of more than 4% throughout the past day. This also ended up flipping BTC’s weekly performance into the green to +3,74%.
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