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Bitcoin Eyes $83.1K Breakout – Will Compressed Shorts Trigger a Squeeze?
Farah Mirza
Editor at AMBCrypto
Last Updated on April 14, 2023
Bitcoin has been trading within the confines of a tight range since March, with bears and bulls engaging in a fierce battle. As we see forward Zoom out further, and the price trend highlighted this sentiment. Since peaking at $106,164 on 21 January, Bitcoin has dropped by 22%, closing March at $82,500.
This decline seemed to be in line with persistent outflows and increasing liquidation events. Then, there’s the funding rate. Source: CryptoQuant Between 24-28 March, rates were negative—indicating short-dominant sentiment. However, by 30 March, that flipped. Positive funding rates now mean rising long exposure. It’s a key sentiment shift.
Shorts may be closing, and longs may be beginning to re-enter. Pair this with Open Interest and the picture sharpens. The calm before the move?
Open interest fell from $25.39 billion to $23.12 billion over the last week of March.
Source: https://ambcrypto.com/bitcoin-eyes-83-1k-breakout-will-compressed-shorts-trigger-a-squeeze/
