Bitcoin Achieves Highest Position in 4 Months..."Short Squeeze to Occur Soon"

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Bitcoin (BTC) recorded its highest position index in four months, accumulating strong price upward energy based on new capital inflows and increased leverage.

According to crypto-specific media outlet Cryptopotato on April 23 (local time), the Bitcoin position index recorded 40.1, and its 30-day simple moving average rose to 4.5, reaching a four-month high. Concurrently, open interest in the futures market surged by 14.5% over the past 30 days, showing the strongest figures in the last 120 days. Virtual asset analyst Axel Adler Jr. analyzed that these indicators suggest an increased risk-taking propensity among market participants and the continuous addition of new leveraged positions.

The position index, a comprehensive signal incorporating directional taker inflows, open interest dynamics, and funding rates, showed repeated short-term surges over the past month. The steady rise of the 30-day moving average from 0.4 at the end of March to its current 4.5 signifies that the market is forming a stable position structure beyond temporary shocks. Compared to February when Bitcoin dropped below $63,000 and this indicator fell to minus 10.9, a rebound of more than 15 points proves that overall investment sentiment has entered a full recovery phase.

The double-digit growth in open interest supports the notion that the current price increase is not a temporary phenomenon caused by a short squeeze (buying pressure occurring to liquidate or cover short-selling positions) but rather by the influx of actual new capital. Analyst Adler explained, "The simultaneous rise in the position indicator and increase in open interest can be interpreted as a signal of new risk asset accumulation." Data showing positive changes in open interest for 23 out of the last 30 days indicates that market activity utilizing leverage has become very active.

A distinctive feature of this indicator, unlike the temporary surge in January, is that it is accompanied by confirmation from open interest. In January, the position index exceeded 20 and 30, but it quickly reversed due to a lack of support from open interest. In contrast, the current structure shows a cooperative movement where the gentle upward curve of the indicator harmonizes with new capital inflows. Bitcoin surpassed $78,000 on Wednesday, reaching an 11-week high, and the market's upward pressure remains valid.

However, caution is also raised that the current bullish signal could weaken if changes in open interest turn negative, showing signs of deleveraging, or if the moving average falls below zero. Until such conditions occur, the dominant analysis is that the market is actively building new positions based on an improved position structure and rising leverage. The Bitcoin ecosystem is attempting to enter further price appreciation phases based on a strengthened supply and demand foundation.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*