K33 Research Predicts Short Squeeze, Bitcoin Price Rally
CryptoNewsTerminal Staff20 Aug, 2024
K33 Research Predicts Short Squeeze, Bitcoin Price Rally
Bloomberg cited an analyst at crypto research firm K33 Research as saying, "As of the 20th (local time), the BTC perpetual futures funding rate (7-day average) was negative, while open interest (OI) surged, increasing the likelihood of a short squeeze (a wave of buying triggered by the liquidation or covering of short positions). This has also increased the possibility of a BTC price rally." The analyst emphasized, "In the perpetual futures market, open interest increased by about 29,000 BTC last week, and the funding rate on the 20th was -2.5%. It is very rare for open interest to explode while the funding rate is negative. If a short squeeze occurs, there is a high possibility that traders will switch from bearish to bullish bets."
