With the cryptocurrency market sentiment turning bullish and leading cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) posting solid gains in the past 24 hours, the race to new all-time highs has begun.
Bitcoin added 6.06% to its value the previous day, propelling it above the $70,000 threshold for the first time in over a month. Due to the short squeeze, experts believe the new all-time high for the flagship crypto is approaching, as traders who had bet against Bitcoin are forced to buy back their positions, further driving up the price.
In the past 24 hours, a sudden decrease in the number of short BTC positions has been noted. The number fell from 291 BTC to just 165, meaning that almost half of the short positions were liquidated with Bitcoin’s rapid price increase, leading to a cascade of buy orders as they rushed to cover their shorts.
Change in BTC shorts in the previous 24 hours. Source: datamish
Willy Woo sees this short squeeze as record-setting
The most recent liquidation of 1 month of Bitcoin short positions leaves only one layer of shorts before a potential short squeeze that could propel the maiden crypto to new all-time highs, according to cryptocurrency expert Willy Woo’s post on X on May 21.
Short positions layers on BTC chart. Source: Willy Woo
If the thesis holds, the current price difference of just 2.92% will be easily surpassed, making a new all-time high above the previous $73,079 on March 14 a reality.
Patterns similar to previous bull runs
Zooming out on the price charts can often offer an additional layer of insight for traders, and that is exactly what professionals do when trying to predict potential future moves.
This price pattern closely resembles the one of the 2017 bull run, which saw BTC’s price surge by over 800%, going from $2,100 to almost $20,000 in a span of six months–an increase that happened from May to December.Now, crypto trading analyst Jelle thinks that history is repeating once again, as patterns look strikingly similar, according to the post on May 21.
Similarity of price patterns on BTC chart. Source: Jelle
If gains are similar, the current bull run may elevate Bitcoin price well above $100,000, with the potential for gains being even higher as the price goes into uncharted territory.
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