Short Squeeze Sees Bitcoin (BTC) Price Hit a 5-Week High, Analysts Expect More Short-Term Bullishness

July 26, 2021 6:41 AM EDT

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Bitcoin (BTC) price has pushed higher overnight to hit $39,770 in a major short squeeze.

“The Chinese trading day has opened up, and the Elon/Jack/Cathie talk was super bullish,” said Alex Brammer of Luxor Mining.

Some cryptocurrency traders have issued warnings that short interest seems to be very high and a squeeze may be coming.

“I think we saw an accumulation period around 29-30K, indicating bullishness and a potential move towards $40K for Bitcoin. I think the extent of the jump was probably driven by over-leverage shorts,” said Vijay Ayyar, head of business development at cryptocurrency exchange Luno.

The price action previously traded in the low $29,000s last week before the buyers have been able to stage a squeeze that helped the world’s largest cryptocurrency gain over $10,000 compared to last week’s lows.

"Over the last five trading sessions we've seen general near-term bullishness in the market, driven by key technicals, as well as recent positive comments," added Ryan Rabaglia, global head of trading at digital asset platform OSL.

"With a record $1.2 billion in shorts liquidated over the past 24 hours, the outlook and momentum for the week ahead is positive.”

Ethereum (ETH) price is also up over 7% on the day to test July highs around the $2,400 handle.

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