According to Cantering Clark Bitcoin continues to show signs of strength, citing a claim from quantitative crypto trader Sam Trabucco that BTC is poised for another short squeeze.
“BTC seems pretty strong up here, and AlamedaTrabucco alluded to more shorts that could potentially get squeezed.
Might be a mistake to not look at this many days as an outlier indicating strength, rather than likely mean reversion.”
But $40k is a local max, so there's also LOTS of potential for shorts put on much lower to get liquidated if we rally even a little more. We'll see! It should be an interesting next few days, and I'm sure glad I caught up on sleep. pic.twitter.com/qUpsWwl1G3
‘A short squeeze’ term refers to a situation where many traders who bet that the asset will go down are suddenly forced to liquidate their positions and buy at higher prices as the market moves against them. The phenomenon sometimes results in the rapid increase of an asset’s value.
As the possibility of a short squeeze increases and BTC has sustained rise, Cantering Clark unveils his new investment strategy.
“New Clark Investment Mandate – Reaccumulate spot. Trying to buy as much Bitcoin as possible in this range.
Bad news seems to have almost no impact on price anymore, this is telling. No sense in trying to be fancy. The differences in entering here or $35,000 will be negligible.”
He adds that the recent lows line up with the lower end of the 20-week moving average, which could mean that Bitcoin might have bottomed out for now.
“Just looking at some trend tools…
That 20 period on the weekly is a really significant line in the sand, and right now it just so happens to line up with the underside of previous lows.”
