Bitcoin Price Prediction – Why A $20 Billion Short Squeeze Could Push BTC To $80k
Bitcoin continues trending upwards, albeit with low volumes, after bouncing off support at $61k. As of 12:22 GMT+3, it was trading at $65,000, up by 1.09%.
The increased bullish momentum is driven by the continued inflow of money by institutions and retail money. With the Bitcoin halving drawing closer by the day, investors are excited that Bitcoin could be headed much higher, which explains why, despite the low volumes, Bitcoin is headed higher.
Up To $20 Billion In Shorts In A Rising Market
Bitcoin is also feeding on shorts in the market, which could be the trigger that gives Bitcoin the momentum to surge to $80k or more in the day or at some point in the week. There are about $20 billion worth of Bitcoin shorts between $69,000 and $75,000. This makes for the perfect short squeeze because there is no real incentive for Bitcoin to reverse at the price levels where shorts are concentrated. That’s because of the coming halving and the fact that major institutions, through ETFs such as the BlackRock ETFs, continue to push Bitcoin higher.
Shorts have grown fat and greedy.
Between these two zones, there are now $20+ billion in liquidations. This will be the most epic short squeeze in #bitcoin history.
All I have to say is tick tock! pic.twitter.com/psphxoxSXz
— Bitcoin Munger (@bitcoinmunger) March 24, 2024
BlackRock is also invested in Bitcoin that they continue releasing new ads to bring even more investors into the Bitcoin fold, further adding to the case for a potential short squeeze soon. Pushing through the shorts at $69k could trigger a price rally as shorts get liquidated, and Bitcoin could easily trade at $80k or more way before the halving.
🚨 BlackRock is not slowing down with their #Bitcoin marketing campaign‼️
New Ad dropped on Reddit 👀 pic.twitter.com/eYj5QPlrmS
— The ₿itcoin Therapist (@TheBTCTherapist) March 24, 2024
Bitcoin Supply On Exchanges Continues To Shrink
The case for a short squeeze is also enhanced even as the demand continues to rise. The supply has also been going down over time. Over the last four years, the amount of Bitcoin traded on exchanges has dropped by 40%. This indicates that over time, those who hold Bitcoin have been unwilling to sell it, and the number of sellers continues to rise. This means inflows, mainly from institutions, are expected to increase.
Less #bitcoin to trade on exchanges now compared to 4 years, down by 40%, with no signs of stopping before the halving. 📉 pic.twitter.com/mNxJrwB6HQ
— Mr.OxBull (@0xBullreal) March 24, 2024
The price can only go higher. With so many Bitcoin shorts over the weekend and more inflows expected as the markets open on Monday, the odds of a short squeeze get even more significant, with a potential spike in a few candles to $80k or even higher prices.
Overall, Bitcoin’s price continues to rise over the weekend, even as a wall of short sellers builds between $69k and $75k. With BTC’s rising price, a $20 billion short squeeze is likely and could quickly push Bitcoin to $80k or in one or two long candles.
Bitcoin Headed For A Breakout As Bears Lose Momentum
Bitcoin has been on a downtrend for the last two weeks. However, bears have been unable to engulf the March 4th weekly candle that saw Bitcoin open at $59,300 and close at $73,441. The lowest Bitcoin has managed to go in the last two weeks is $61,067, and even this price has been rejected as Bitcoin continues to trend higher, now trading at $65k. This is a signal that bears are not only weak but that bulls are retaking the market.
If Bitcoin starts the new week above $64,500, it would confirm that the bearish momentum is lost. The critical level to watch in such a scenario would be Bitcoin’s new high of $73,441. If Bitcoin manages to push through this high, then prices above $80k could become a reality in the very short term.
However, two scenarios could play out if bulls lose momentum and Bitcoin ends the week below $64,000. The first is a possible consolidation between $73,441 and this week’s low of $61067.
On the other hand, if bears take control and push Bitcoin below $61,067 before this weekend ends in a few hours, then Bitcoin could be headed to prices below $55k once the markets open.
Bitcoin Price Prediction – The Case For $80k
While there is always a case where Bitcoin could consolidate or turn bearish, the momentum so far favors bulls. Bitcoin is currently edging higher, and all indicators are that it will end this week’s candle above $65k. This presents the perfect case for a rally and supports the idea that a short squeeze could see Bitcoin rally to $80k in a single candle.
The rising buying volumes, driven by expectations of higher prices post-Bitcoin halving, make the case for an upside breakout highly plausible.
Kamal Masri
Kamal is an experienced financial analyst with a demonstrated history of working in the Financial Market. Skilled in Equities, Capital Markets, Portfolio Management, Risk management, and Corporate Finance. Kamal has worked at some of the leading online finance publications providing his expert knowledge on cryptocurrency. Kamal has written widely on digital assets across the stock and crypto media space and beyond, including for Coindesk, Ethereum World News and The FinTech Times.
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