Can Bitcoin (BTC) Short Squeeze Revive Crypto Markets?

Bitcoin, Ethereum and other major coins traded mixed at press time on Tuesday evening as the global cryptocurrency market cap rose 0.8% to $912.5 billion over 24 hours.

Price Performance Of Major Coins
Corner 24 hours 7-day Price
Bitcoin BTC/USD 0.1% -6.3% $20,608.95
Ethereum ETH/USD -0.8% -7% $1,117.93
Dogecoin DOGE/USD 8.2% -17.7% $0.065

Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
waves (WAVES) +43% $6.89
shiba inus (SHIB) +28.5% $0.00001046
Zilliqa (ZIL) +19.7% $0.04115

See Also: Best USDC Interest Rates

Why It Matters: Two of the largest cryptocurrencies showed some strength on Tuesday. Bitcoin and Ethereum hit intraday highs of $21,620.63 and $1,185.43 respectively before retreating.

Cryptocurrencies followed stocks in retreat. S&P 500 and Nasdaq futures were down 0.35% and 0.33%, respectively, at press time after having ended Tuesday 2.45% and 2.5% higher.

OANDA senior market analyst Edward Moya said cryptocurrency traders have been “walking a lonely road” and no one knows how it will go. However, the market is “seeing some buyers emerge” as selling pressure may have been overdone.

“Crypto is not going away and some investors are starting to believe further downside might be limited,” wrote Moya, in a note seen by Benzinga.

GlobalBlock analyst Marcus Sotiriou said Bitcoin faces strong resistance at the $21,300 mark, with the next target being $23,500 provided shorts get squeezed.

“Bitcoin seems primed for more upside relief in the short term, as future funding is starting to get negative on the way up, after being neutral yesterday. This means that the majority of players in the futures market are entering short positions whilst price is rising, which could lead result in a short squeeze.”

Cryptocurrency trader Justin Bennett said “signs of breakthrough” have started to develop in the market but the bottom is still not in.

Chartist Ali Martinez tweeted that people were still searching for “signs of capitulation” even as Bitcoin has fallen from $69,000 to a low of $17,600. He said while it could potentially touch the $16,000-$14,000 level in another downswing, it is impossible to time the bottom. He suggested investors use dollar-cost averaging all the way.

Market behavior analytics platform Santiment noted that the ratio of Bitcoin’s supply continues to stay low at levels last seen in November 2018.

“This is a good signal of limited future selloff risk. In the meantime, [Tether] supply continues skyrocketing on to exchanges, indicating greater buying power,” tweeted Santiment.

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