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RE: As The Bitcoin Short Quietly Grows, Is A Short Squeeze Imminent?

in #bitcoin7 years ago

What exactly is a short squeeze?

It would be nice to see BTC getting bullish and heading back to previous highs, but the market seems easily influenced by any amount of FUD, there are a lot of players and factors affecting price, but I think most of us believe there's no way we don't see ATH's eventually

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A short squeeze is when an asset is heavily shorted and the price starts rising. This causes the shorts to have to cover which results in more buying. This cycle repeats itself by speeding up so that shorts are all caught looking down when the price is heading up. In essence, they have to come up with more capital.

thanks for the info! I have a lot to learn in regards to trading

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