Popular on-chain analyst Willy Woo says Bitcoin (BTC) could be due for a short squeeze in the near future.
Woo tells his 1 million Twitter followers that BTC’s fundamentals are picking up.
“Fundamental Strength Indicator is no longer overheated and starting to rise (FSI tracks the strength of 17 fundamental and technical indicators)
If price gets much above $25,000, we could be in for a short squeeze.”
A short squeeze happens when large numbers of traders who shorted an asset decide to cut their losses in response to an unexpected price bump. The squeeze then triggers additional rallies.
Woo notes Bitcoin is probably “entering the re-accumulation phase of the cycle,” based on his analysis of the timing of past cycles.
Says the analyst about the threat of a recession,
“Not an expert on trad macro, but looks like macro liquidity is on the uptick. BTC is still linked to this. Right now expecting a climb and a dead cat if the recession kicks in. Also, think a de-coupling may happen in future cycles.”
BTC is worth $24,204 at time of writing. The top-ranked crypto asset by market cap is down 0.27% in the past 24 hours and nearly 1.7% in the past week.
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