Bitcoin has seen a 4.16% increase over the past 24 hours amid high demand for short positions and discussions about its post-holiday performance.
Bitcoin's Price Increase and Demand for Shorts
Bitcoin has experienced a rising trend over the past 24 hours, showing a 4.16% increase and is currently trading at $98,056. On Christmas Eve, the price rose from $93,461 to $99,419, sparking discussions about its future performance post-holiday. Cryptoquant analyst Traders Oasis predicts bitcoin will move sideways during Christmas week, with a distribution phase following due to increased demand for short positions.
Implications of Rising Short Trade Demand
Decreasing funding rates with rising open interest suggest investors are opening short positions anticipating a price drop. However, a surge in short trades could lead to a 'short squeeze', resulting in a self-reinforcing rally due to increased buying pressure. Over the last three days, the BTC fund flow ratio has increased from 0.084 to 0.137, indicating rising investments into bitcoin. This is a bullish signal, suggesting investors are willing to allocate more capital to BTC.
Bitcoin's Future Outlook
With increasing demand for short trades, traders might experience a short squeeze, driving prices up. If supply continues to fall while demand remains steady, Bitcoin could potentially reclaim the $100k resistance post-Christmas. Conversely, if the cryptocurrency continues to trade sideways, its value might drop to $96,600.
The increasing demand for short positions significantly influences the Bitcoin market. The near future will show whether the cryptocurrency can overcome key resistance levels.
