Bitcoin Short Squeeze Could Catapult Price To New All-Time High – Here’s Why 📈

Bitcoin has experienced significant upward momentum over the past two weeks, breaking above the psychological $65,000 mark. This marks a substantial recovery of 25.5% from its low of $52,820 on September 6. According to Coinglass data, this is the largest gain since 2013 for Bitcoin in September.

Crypto analyst Ali Martinez highlighted that 57.77% of Binance users with open positions are shorting Bitcoin. This trend of betting against BTC amidst strong upward momentum sets the stage for a potential short squeeze, which could drive the coin’s price to new all-time highs in October, a month historically bullish for Bitcoin.

The potential for a short squeeze is bolstered by institutional and whale inflows into Bitcoin, especially through Spot Bitcoin ETFs. Despite this bullish outlook, there is a possibility of a short-term correction indicated by the TD Sequential sell signal on the 4-hour chart, hinting at a brief pullback before resuming its upward trend.

Such a correction could serve as a consolidation phase, potentially triggering more short positions and setting up for a larger short squeeze when BTC rebounds. At the time of writing, Bitcoin is trading at $65,658.