RATE Group | Long Squeeze Incoming? 3 Reasons Why Bitcoin Price May Correct Sharply
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Long Squeeze Incoming? 3 Reasons Why Bitcoin Price May Correct Sharply

17 May Long Squeeze Incoming? 3 Reasons Why Bitcoin Price May Correct Sharply

Posted at 20:10h in Bitcoin News by

The price of Bitcoin (BTC) rose slightly above $9,900 on BitMEX, rising by nearly 9% within less than 48 hours since May 16. Despite the impressive recovery, the top ranked digital asset on CoinMarketCap faces a risk of a major long squeeze in the near-term.

Three factors that suggest the price of Bitcoin may correct following its recent rally from $9,100 to $9,900 are the: overwhelmingly large number of longs over shorts, rising funding, and a possible triple lower high formation.

Bitcoin longs overwhelmingly trump shorts

Across Bitfinex, BitMEX, and Binance Futures, 77.51% of traders are holding long positions on average.

In total, on the three futures exchanges alone, there are $763 million worth of longs filed, whereas merely $221 million in shorts are present.

Total Bitcoin longs and shorts. Source: Blockchain Whispers

Total Bitcoin longs and shorts. Source: Blockchain Whispers

If the price of Bitcoin is going up without facing significant resistance, a high number of long contracts can be considered an optimistic factor. It suggests the…

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