Bitcoin bears face short squeeze risk as price rises above $44,000, analyst says
Quick Take
- Bitcoin short leveraged positions are at risk as the digital asset breaks through the $44,000 mark.
Bitcoin's 'bullish catapult'
Analysts from Bitfinex pointed to two BTC price levels that have seen a significant amount of liquidations given the recent market volatility. "Currently we can see large short liquidations at $41,950, and then at $42,200," Bitfinex analysts told The Block.
Above these levels Bitfinex, the analysts said that the bitcoin price could experience "a bullish catapult" due to forced liquidations when shorts are forced to buy in order to close their trades.
Bitcoin was up as much as 5.3% on Tuesday, trading for $44,090 at 1:45 p.m. ET.
(Updates headline and story to show that bitcoin surpassed $44,000 on Tuesday.)
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