bitcoin short squeeze, bitcoin price, bitcoin january,. Photo by BeInCrypto Bitcoin (BTC) is experiencing a volatile January. The coin climbed to a nearly four-week high earlier this week before briefly slipping below $90,000 yesterday. Amid these fluctuations, analysts are pointing to several key signals that could indicate the possibility of an upcoming short squeeze. Bitcoin Derivatives Data Points to Rising Short Squeeze Risk According to BeInCrypto Markets data, the largest cryptocurrency continued ...

Market Overview - The crypto market is experiencing a positive sentiment with Bitcoin (BTC) reaching $93,350, its highest level since December 11, before retracting some gains [1] - The significant price movement occurred at midnight UTC coinciding with the opening of Bitcoin futures trading on the CME exchange, creating a price gap between $90,500 and $91,550, which is expected to be filled in the coming days [1] Trading Focus - Traders are primarily concentrating on Bitcoin, which has increased by 1.33% since midnight, while altcoins such as CoinDesk Meme (CDMEME) and Metaverse (MTVS) indexes have declined by 6.4% and 2.3% respectively [2] - The rise in equities and precious metals indicates a risk-on sentiment following recent U.S. actions in Venezuela [2] Derivatives Positioning - In the last 24 hours, exchanges have liquidated leveraged crypto futures bets worth $260 million, predominantly from short positions, indicating a bearish leverage that was caught off guard by the price increase [5] - Open interest (OI) in Bitcoin (BTC), Bitcoin Cash (BCH), XRP, and BNB has risen between 2% to 5%, while OI for ETH, SOL, DOGE, and ZEC has remained flat to negative, suggesting improved risk appetite for select coins [5] - BTC's annualized perpetual funding rates have exceeded 10%, reflecting growing demand for bullish exposure, while rates for several altcoins remain below zero [5] Token Performance - Despite the focus on Bitcoin, some tokens have outperformed the broader market, including LIT, which has risen by 3.9%, and FET, which has increased by 7.4% since midnight [5] - However, some tokens like Zcash (ZEC) have declined by 2.5%, and memecoins such as DOGE and PEPE have lost 1.4% and 4.5% respectively, indicating a fractured performance across the altcoin market [5] - The average crypto relative strength index (RSI) is at 58/100, entering "overbought" territory, suggesting a potential short-term price drop as profit-taking may occur [5]

Key Milestones - Boros reached $200 million in Open Interest, marking a new all-time high [1] - Boros crossed $6.3 billion in notional trading volume [1] Growth Trajectory - The $6.3 billion notional trading volume was achieved in approximately 4.5 months since launching in August [1]

Market Trends - Perpetual open interest for Bitcoin increased from 304 thousand BTC to 310 thousand BTC [1] - Funding rates for Bitcoin rose from 004% to 009% [1] Investment Activity - The increase in funding rates suggests a new accumulation of leveraged long positions in the Bitcoin market [1]

Market Analysis - Industry should monitor capital inflows and outflows [1] - Industry should observe changes in open interest [1]

Market Prediction - Industry analysts predict a potential Bitcoin (BTC) price surge to $96,000 within 5 days [1] - This prediction is based on the upcoming BTC options expiry on December 26, with a significant $938 billion open interest on Deribit [2] Options Market Dynamics - The majority of open interest is concentrated around the $96,000 level [3] - At this price point, a large number of options are expected to expire worthless, benefiting option sellers such as market makers and large desks [4][5] - Option sellers' hedging and positioning strategies may influence the price to move towards the $96,000 level as the expiry date approaches [6]

Market Analysis & Bitcoin Performance - Market experiences downturn, impacting Bitcoin's price, potentially linked to open interest [1] Investment & Trading Risks - Crypto investing and trading involves risk of loss, emphasizing the importance of individual research and caution [1] - The content is not financial, legal, or tax advice, serving entertainment purposes only [1] Educational Resources & Strategies - Highlights a series of crypto-related videos covering topics like avoiding scams, storage diversification, and profit-taking strategies [1] - Offers simplified crypto education through a website (danteachescryptocom) [1] - Introduces various crypto strategies, including "5% DEGEN PLAYS," crypto exits, and Dollar-Cost Averaging (DCA) examples [1] Product & Service Recommendations - Promotes iTrust CRYPTO IRA with a $100 sign-up bonus and no monthly fees [1] - Recommends Kraken for crypto trading, offering $25 in the app [1] - Suggests TANGEM COLD STORAGE WALLET for secure crypto storage, offering a 10% discount [1] - Advocates for using STONEBOOK to safeguard seeds and passwords, providing a 20% discount [1] - Mentions CoinLedger for crypto tax software and portfolio tracking, offering a 20% discount [1] Security & Scam Awareness - Warns against A-I scams and emphasizes the importance of sourcing information [1] - Provides a link to a post addressing scam messages, DMs, or emails [1] Charitable Initiatives - Supports ProTechos, an organization helping the poor rebuild roofs and training the next generation in carpentry [1] - Promotes a GoFundMe campaign to support an animal shelter director in Puerto Rico [1]

Market Trends - Open interest is at an all-time high (ATH) [1] - Open interest is up 170% year-over-year (YoY) [1] US Elections - Mentions the 2024 US elections in relation to Polymarket [1]

Market Position & Trading Volume - LBank Derivatives highlights its leading position among centralized exchanges (CEX) [1] - The platform reports over $72 billion traded in 24 hours [1] - Open interest exceeds $28 billion [1] Top-1 Holdings Dominance - BSV exhibits a dominance of 7868% [1] - PEOPLE shows a dominance of 5705% [1] - TON demonstrates a dominance of 4412% [1] - ATOM reveals a dominance of 4116% [1] - BCH indicates a dominance of 3291% [1]

Market Trends - Daily futures liquidations have nearly tripled (increased by approximately 200%) in the current market cycle compared to the previous one [1] Risk Factors - Increased open interest and heavier leverage across crypto exchanges are driving the surge in liquidations [1]