Will Bitcoin suffer from a Dollar Index short squeeze? The market is watching closely, with many anticipating a shift in momentum. Bitcoin [BTC] and the rest of the crypto market are generally expected to benefit from a weaker US Dollar Index (DXY). However, a different scenario is now gaining traction: the potential for a dollar index short squeeze.
Hace 2 días, the focus shifted to the possibility of the USD staging a comeback. The US Dollar Index (DXY) has plunged by more than 10 points since January, marking one of its sharpest year-to-date (YTD) declines since the turbulence of September. The biggest obstacle for crypto remains the USD – where we think the market is heavily positioned to the short side and vulnerable to a short squeeze, which could negatively impact Bitcoin.
As Bitcoin (BTC) toes around the $70,000 price mark, there’s speculation that short-sellers are feeling the pressure. Diminishing downtrends and quicker-moving upward momentum are causing concern for those betting against Bitcoin. This leads to the question: ¿Se avecina un short squeeze de Bitcoin o una caída a USD 87K? Bitcoin podría liquidar un gran bloque de posiciones cortas apalancadas con un viaje por encima de crucial resistance levels.
Bitcoin is setting up a showdown with leveraged shorts immediately above its yearly open price. That key level near $93,500 is the main target for traders hoping that a short squeeze will materialize. The chart suggests $90,000 as a psychological barrier where a squeeze may occur, potentially forcing short sellers to buy back BTC at a loss. As of writing, CoinMarketCap data reflects the current market conditions.
While a DXY short squeeze could present short-term headwinds for Bitcoin, it's crucial to remember that the crypto market's long-term trajectory remains tied to various factors, including adoption rates, regulatory developments, and technological advancements. The possibility of a short squeeze on the Dollar Index adds another layer of complexity to the current market dynamics, requiring investors to exercise caution and conduct thorough research before making any investment decisions.