Morgan Stanley: BTC may be in the process of a short squeeze, with short positions closing to drive prices up
Odaily News Odaily Planet Japan News: Morgan Stanleys cryptocurrency strategy team pointed out that when traders bet on the decline of Bitcoin with leveraged tools, the continued rise in prices will put their margin accounts at risk of being liquidated. At this time, they must urgently repurchase Bitcoin from the market to close their positions. This concentrated repurchase behavior will in turn further push up prices, forming a positive feedback loop of price increase-short position closing-price increase again.
Coinglass data shows that long orders reached US$5.762 billion in the past hour, up 52.94%, but the current short position still accounts for 48%. Morgan Stanley said that most shorts are concentrated at defensive points below US$115,000. If the price continues to stabilize at US$117,000, it may trigger a new round of short liquidation of US$500 million, further strengthening the upward momentum.
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