$93.5 million in BTC shorts closed on Bitfinex

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Bitcoin shorts worth $93.5 million closed in December 2022, could this be a sign that a BTC price rally is imminent? Experts say that the late sell-off in the shorts implies a short squeeze, the overall sentiment and outlook must change for a bullish breakout. Bitcoin price predictions for 2023 range from $30,000 to $250,000 as analysts look for peak opportunities for bulls.

Bitcoin experts wonder if the recent movements of the largest asset by market capitalization are indicative of a rally or a short squeeze. A short squeeze occurs when an asset that has been in an extended downtrend sees its price rise suddenly and quickly and short sellers decide to cut their losses and exit their positions. The rise in the price of BTC during a short squeeze can last anywhere from a few weeks to a few months, depending on other factors influencing the asset.

Analysts remain bullish on a 2023 BTC price recovery, bulls continue their hunt for a Bitcoin breakout.

Also Read: Bitcoin and Ethereum to Fight Growing Liquidity Pressure in 2023, Here’s What to Expect

Bitcoin Shorts Worth $93.5 Million Liquidated in December, BTC Price Rally Coming?

Bitcoin shorts worth $93.5 million were closed in December 2022 on the cryptocurrency exchange, Bitfinex. A massive volume of closed shorts implies that traders were bearish on the asset and decided to cut losses once the price of BTC rose. Interestingly, this also signals uncertainty in the direction of Bitcoin price.

Bitcoin shorts liquidated in December 2022 on Bitfinex

During the second half of 2022, BTC went through several phases of low volatility and sideways price movement. Volatility has finally returned and experts are predicting the same for the first quarter of 2023. Bitcoin maximalists, investors and traders who believe that BTC is the most superior cryptocurrency available and the one that is here to stay long term argue that a price hike is imminent.

On the contrary, technical experts from The Trading Capital, an online trading community, believe that the BTC pump is just a short squeeze triggered by the liquidation of lagging shorts. But the uptrend needs to be confirmed by a surge in trading volume and a positive trend in the macroeconomic outlook. Analysts say the general sentiment among BTC traders is bearish and recommend waiting for confirmation before opening a long position in the asset.

BTC total liquidations

Based on the above chart from Coinglass, $9.12 million in short positions and $2.02 million in long positions have been liquidated as of January 2.

Bitcoin price prediction for 2023: $30,000 to $250,000, bullish outlook on BTC

Bitcoin price predictions range from $30,000 to $250,000 among experts and analysts. Tim Draper, an American venture capitalist, maintained a bullish stance on BTC and predicted a run to $250,000 by the end of 2023. Draper’s target implies a 1,400% rally in largest cryptocurrency.

Carol Alexander, professor of finance and chair of risk management at the ISMA Center, says Bitcoin is poised for gains and argues that FTX contagion could catalyze a “managed bull market.” Alexander thinks BTC could reach $50,000 in 2023.

Alistair Milne, a British entrepreneur and investor, has set a target of $45,000 for the largest cryptocurrency by market cap. Milne thinks the price of BTC should reach $150,000 to $300,000 by the end of 2024, arguing that “now is not a time to be bearish and this is probably a peak opportunity for bulls. “.

Swedish researcher and Simp DAO founder Eric Wall believes that BTC could pump over $30,000 at some point in 2023, with no specific timeline. Wall argues that $15,400 was the bottom for the virtual asset.

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