Bitcoin Shorts Face Squeeze as Price Targets $50K

Bitcoin had a strong start on February 9th, with 24-hour gains reaching 6%. The cryptocurrency took a pause as it retraced its trajectory after hitting $47,700. This move was driven by spot markets, and Bitcoin continued to perform well during the Asian and United States trading sessions. At the time of writing, volatility remained, with Bitcoin still trying to reach its highest levels since late 2021. This week’s performance marked Bitcoin’s strongest since October of last year.

A popular trader named Jelle commented on the situation, stating that Bitcoin is making a strong bounce from the midrange and is attacking $48,000 again. Once it breaks this level, there won’t be much standing in the way of new all-time highs. Jelle described the current price range as a “moment of truth.” Another trader named Skew warned that the volatility would likely continue throughout the day.

Keith Alan, CEO of trading resource Material Indicators, had a more cautious outlook. He noted that there is significant sell-side liquidity just below the two-year range highs and $50,000. He advised investors to consider this before FOMOing into Bitcoin at the current level. He also mentioned that a weekly close above $45,000 would be beneficial for bulls, as whales could easily push the market higher if $50,000 is reached, which would be detrimental to short positions.

In terms of spot Bitcoin exchange-traded funds (ETFs), the day’s flows were encouraging for bulls. The Grayscale Bitcoin Trust (GBTC) saw outflows And the cumulative netflows among the other nine ETFs were the third-largest since their launch on January 11th. This is a positive sign for the market. ETFs from BlackRock and Fidelity Investments had the most successful first month’s trading of any ETF product in the past thirty years.

Bitcoin’s performance on February 9th showed promise, but there are still some challenges and uncertainties ahead. Traders and analysts are closely watching the price movements and liquidity levels to determine the next direction for the cryptocurrency. The performance of spot Bitcoin ETFs is also being closely monitored, as it provides insight into investor sentiment.