Bitcoin rose overnight as the S&P 500 futures rose more than 1.5 per cent, but it still confronts heavy resistance around $21,300. As shorts are pressured, if Bitcoin can break through this level, the next objective of $23,500 might be attained. Bitcoin appears to be set for further short-term positive respite, as futures funding is turning negative on the way up after being neutral yesterday. This suggests that the bulk of futures market participants are establishing short positions as the price rises, potentially resulting in a short squeeze.
When the price of a severely shorted asset starts to rise, this is known as a short squeeze. Short-sellers may then be forced to purchase shares to cover their holdings, resulting in a quick price increase and an upward spiral.
Many clever investors have been looking for the “ideal set up” for a short squeeze on the Celsius token, $CEL, which has surged more than 100% in the last 24 hours. Because withdrawals from the Celsius Network are frozen, about 87 per cent of the $CEL token supply is locked in the Celsius Network. Because to the low liquidity, short sellers can’t buy the $CEL token on the open market to cover their holdings.
Despite being a result of market manipulation, the rise in the price of $CEL could boost investor confidence in the market in the near term, as Celsius, one of the key contributors to the recent fall, appears to be in better shape.
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