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The cryptocurrency that traders and investors most likely forgot about has entered the top 5 of the market with a modest 2.5% price increase in the last 24 hours. Due to the dull performance of other assets, BSV comes out on top, but thanks to the potential short squeeze, BSV's price performance might bring us even more surprises in the future.
Short squeeze
According to exchange data, BSV remains one of the most shorted assets on the market, with almost all traders executing short orders, which is not surprising considering BSV's performance on the market throughout the year. The coin lost around 70% of its value during the bear market and made no long-term reversal attempts.
However, an unhealthy extent of short orders on the market can sometimes be considered a favorable factor for an asset, especially if it does not have deep liquidity. Whenever a large buying volume occurs and drags the spot price of an asset to a certain price threshold, the liquidation cascade for short orders begins, which usually causes an extreme volatility spike upward, pushing the asset's values to new extremes.
Back in November, BSV already experienced a strong short squeeze that pushed the asset's value to $67 in a matter of hours. Unfortunately, market makers or bears found enough power to push the asset's value downward.
Alex DovbnyaThis might also be the case for BSV in the future, especially if some extent of buying power occurs on the market. Unfortunately, for demand to occur, BSV should provide some kind of fundamental value and usage for investors, which is not the case at this point for the asset that aims at realizing the vision of Bitcoin's creator.
Alex Dovbnya
Godfrey Benjamin
Vladislav Sopov
Dan Burgin