Bitcoin Poised for Upside Move, Says Santiment
Blockchain analytics platform Santiment believes that Bitcoin (BTC) is likely to experience an upward movement due to a specific factor. The platform points out that there is a significant amount of short interest in Bitcoin on two major crypto exchanges. This could potentially lead to a short squeeze and push BTC above the $30,000 mark. Since the increase in shorting began, BTC’s price has already increased by 4%, and there is a good chance that this trend will continue.
Understanding a Short Squeeze
A short squeeze occurs when traders who borrow an asset at a certain price with the intention of selling it for less are forced to buy back the borrowed assets as the market moves against them. This triggers further rallies in the price of the asset. Santiment highlights that Bitcoin’s network activity has also surged as it crossed the $27,000 level. On-chain activity remains significantly higher than in previous months, indicating increased utility and interest in BTC.
Whale Holdings and Stablecoins
Santiment is closely monitoring the holdings of stablecoins by large crypto investors known as whales. An increase in stablecoin holdings after a decline could indicate an upcoming upside move for Bitcoin. Currently, whale holdings of stablecoins are at their lowest level in six months. However, if wallets holding $5 million or more start accumulating stablecoins again, it could signal a turnaround for BTC.
Bitcoin’s Current Price
At the time of writing, Bitcoin is trading at $26,588, representing a 2.2% decrease in the last 24 hours.
Hot Take: Bitcoin’s Potential for Growth
According to blockchain analytics firm Santiment, Bitcoin has a good chance of surging higher in the near future. The presence of significant short interest on major crypto exchanges suggests the possibility of a short squeeze, which could drive BTC’s price beyond $30,000. Additionally, Bitcoin’s network activity has seen a notable increase as it surpassed the $27,000 level. Santiment is also monitoring whale holdings of stablecoins, as an increase in these holdings could indicate an upcoming upward move for Bitcoin. Despite its current price decline, Bitcoin remains poised for potential growth.
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