All holders who decided to long Bitcoin (BTC) positions within the turbulent sub-$10000 zone should listen carefully to this trading veteran.
Violent squeeze is in the cards
Trader Jacob Canfield is treating the last Bitcoin (BTC) price pump and huge positive funding it correlates with as indicators of an upcoming crisis.
The situation is ‘scary’ as the January run may be ‘setting up for a pretty big long squeeze to the downside’.
#Bitcoin is looking a bit scary for the bulls at the moment.
The prolonged positive funding could be setting up for a pretty big long squeeze to the downside.
If support breaks, it will most likely be a violent squeeze as longs cover their positions
Watch for support reactions pic.twitter.com/KmSWKlGOaB— Jacob Canfield (@JacobCanfield) February 3, 2020
The trader analysed the positions for Bitcoin futures settled in U.S. Dollars (XBTUSD) on BitMEX and found strong assumptions for a bearish U-shift in the direction of the Bitcoin (BTC) price.
Mr. Canfield admits that ‘If support breaks, it will most likely be a violent squeeze as longs cover their positions’.