BTC $27M mass short position liquidation, Metric to Watch Going Forward

BTC-27M-mass-short-position-liquidation-Metric-to-Watch-Going-Forward

At 18:00(UTC+9), $BTC rallied to $51.6k, triggering the liquidation of a $27M bulk short position. In order for a subsequent short squeeze to be successful, it must be accompanied by upward volatility with spot buying. 

In the recent short squeeze cases of December 6, '23 and January 9, '24, large short positions of more than $30M were liquidated, pushing the price to higher highs but failing to create a strong uptrend, and the price soon pulled back and corrected. 

If we don't generate upside volatility quickly, similar to those two cases, we could see a week or so of sideways moves followed by a price correction. In the end, a big upside move in a short period of time will be the key to continuing the uptrend going forward.

On the other hand, while Bitcoin is moving sideways for a few days, altcoins like Bitcoin are likely to see a pumping market, and from now on, we need to closely monitor the Kimchi Premium + Funding Ratio + Short-term holder profit and ratios, which are indicative of overheating.