The world’s largest cryptocurrency Bitcoin has been showing volatile price swings in recent times. After falling under $46,000 on Monday, December 20, the BTC price has bounced back moving past $48,500 levels once again.
As of press time, Bitcoin is trading 3.66% up at a price of $48,610 and a market cap of $918 billion. Popular market analyst Will Clemente notes that a Bitcoin short squeeze is building up slowly similar to the one we saw in mid-July. However, for a clear indication of the next upward momentum, Will is still awaiting the high-time frame (HTF) trigger at $53,000 levels on a closing basis.
Still waiting for HTF trigger at $53K close, but feels like a short squeeze is building. Just give some more negative funding. pic.twitter.com/oc9aKQmNmY
— Will Clemente (@WClementeIII) December 21, 2021
A short squeeze is a condition when there are an unusual number of short-seller holding positions and usually results in rapidly rising prices of a tradable asset, in our case it’s Bitcoin. However, for clear signs of a Bitcoin short squeeze, the funding rates need to turn negative and we are yet not there still.
It is too early to say anything at this point whether today’s price surge represents a trend reversal from the downfall.
Bitcoin Price Surges Back Above $48,500 Levels
The Bitcoin price volatility has kept traders on the hook who are watching technicals with a hawks-eye. As per the recent price action, BTC has given an upward breakout on the descending pattern, however, it remains to be seen how long it can sustain it.
— Benjamin Cowen (@intocryptoverse) December 21, 2021
In one of his latest YouTube videos, Benjamin further explains that if Bitcoin RSI levels too manage to break the descending pattern, we can probably see Bitcoin breaking its downtrend and heading northwards.
The recent Bitcoin price volatility has confused retail investors about when could be the right time to enter the space. For the month of December 2021, Bitcoin is already down by around 20% as investors await the Santa rally. Some analysts also believe that the Bitcoin bull run will extend further into Q1-Q2 2022.