Bitcoin Short Positions Worth $32 Million Wiped Out as Price Briefly Spikes to Mid-$27,000s – Here’s Where BTC is Headed Next
A brief rally during the early morning hours of Saturday has seen bitcoin short positions worth around $32 million wiped out. This comes as the digital asset briefly spikes to the mid-$27,000s before receding again. Now traders and analysts are discussing the short-term prediction for where BTC is headed next.
On January 2nd, the digital asset saw a brief price spurt, reaching levels of $27,750 on BItcoin spot exchange. During this time, around $32 million worth of shorts were liquidated, as per data from analytics tracker Glassnode.
If sustained, this bullish momentum could lead to further shorts being squeezed, which many pundits note could result in a crypto price increase. According to CryptoQuant CEO Ki Young Ju, if short positions remain empty at a high rate, a short squeeze could push BTC to new highs.
For now, however, the rally appears to have stalled. Currently, Bitcoin is trading hands at $27,175. Looking forward, some have suggested that the benchmark cryptocurrency could drop to the mid-$20,000s. Others feel that if the bulls remain in control, the asset could push to new highs past $30,000.