BITCOIN'S RALLY WAS MORE THAN A SHORT SQUEEZE
Contrary to what many are saying, I don’t see Bitcoin’s recent move as a mere short squeeze. While short covering was clearly part of it, calling that the whole story feels far too simplistic.
I view the liquidation of shorts as a second phase of a move that was already underway.
#Bitcoin
was sitting on a major historical support level where short sellers (myself included) were already sitting on substantial unrealized profits. What actually changed things was a sudden surge of interest right after Scott Bessent’s buyback announcement on Wednesday at 9:30 AM Brazilian time (8:30 AM Washington time).
Looking at the 30 minute chart, you can clearly split the volume into two distinct periods: a low interest phase before the announcement (marked by the yellow circle in the chart) and a high interest phase afterward, marked by a clear pickup in volume.
Historically, monetary and fiscal heterodoxies have always acted as fuel for Bitcoin rallies. So I don’t see what just happened as a purely technical event.
Contrary to what many are saying, I don’t see Bitcoin’s recent move as a mere short squeeze. While short covering was clearly part of it, calling that the whole story feels far too simplistic.
I view the liquidation of shorts as a second phase of a move that was already underway.
#Bitcoin
was sitting on a major historical support level where short sellers (myself included) were already sitting on substantial unrealized profits. What actually changed things was a sudden surge of interest right after Scott Bessent’s buyback announcement on Wednesday at 9:30 AM Brazilian time (8:30 AM Washington time).
Looking at the 30 minute chart, you can clearly split the volume into two distinct periods: a low interest phase before the announcement (marked by the yellow circle in the chart) and a high interest phase afterward, marked by a clear pickup in volume.
Historically, monetary and fiscal heterodoxies have always acted as fuel for Bitcoin rallies. So I don’t see what just happened as a purely technical event.
