Between April and May 2023, multiple signals of short position pressure were noted, leading to sharp liquidations and price surges in Bitcoin.
Short Position Pressure Indicator
The short position pressure indicator shows how moments of intense pressure on short sellers lead to sharp price surges in Bitcoin. Specifically, data indicates that spikes in this indicator precede or coincide with strong upward moves in BTC prices.
Current Situation Analysis
Currently, the situation appears more neutral, with no strong squeeze signals, suggesting a temporary easing of pressure from short sellers. This may indicate a cooling-off period where price movements will become less volatile.
Potential Consequences for Traders
Despite the current situation, history suggests that short position pressure may return quickly, bringing significant volatility. Traders should remain alert to changing market conditions.
The situation with short position pressure on Bitcoin remains under control, but potential changes could occur at any moment, leading to significant price fluctuations.
