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The cryptocurrency market has shown early signs of recovery after a dramatic decline on Monday in which over $1 billion in leveraged positions were liquidated and major cryptocurrencies lost up to 20% of their value.
The latest turbulence has led Coinbase analyst David Duong to suggest the possibility of a short squeeze as the market tries to stabilize.
In a statement today, Duong emphasized that increased buying activity on centralized exchanges could lead to a short squeeze and potentially lead to a rally in the cryptocurrency market in the next few days.
“We believe market uneasiness will continue in the short term, but it is possible that shorts will get stuck here, leading to a market recovery in the near future,” Duong said.
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Available data shows an almost equal split between long and short liquidations in the last 24 hours.
According to Coinglass, of the total liquidation of $425 million, approximately $212 million was from long positions and slightly more than $212 million was from short positions.
However, Duong stated that some factors continue to put pressure on the market. “There are ongoing distributions of Bitcoin and Ethereum by Genesis as part of its bankruptcy liquidation plan.
Additionally, settlement of Japanese yen carry trades, Mt. Gox may be influencing creditors' decisions to acquire their Bitcoins,” he added.
Despite the slight recovery in prices, the bitcoin futures funding rate remains negative, indicating continued demand for short positions and signaling that many traders are still betting on further declines in Bitcoin price.
*This is not investment advice.
 Continue Reading: <a href="https://en.bitcoinsistemi.com/coinbase-analyst-david-duong-says-short-positions-direct-the-market-here-are-the-details/" rel="noopener noreferrer nofollow">Coinbase Analyst David Duong Says Short Positions Direct the Market! Here are the Details</a>

Coinbase Analyst David Duong Says Short Positions Direct the Market! Here are the Details

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