Despite calls for a short squeeze since Bitcoin and Ethereum reached local lows around $3600 and $105 on November 25th, the number of short positions opened for both Bitcoin and Ethereum have reach all time high levels.
There is a “shorts ATH narrative” that is currently circulating among multiple social media networks which implies that a “short squeeze” is overdue to liquidate over leveraged short positions and tap into liquidity by running stop losses.
Although a bounce might play out on both Bitcoin and Ethereum, basing trading decisions on long vs shorts is not a consistent and reliable way to make winning trades. Price action and indicators are far more important.
Both charts for Bitcoin and Ethereum look bullish on multiple time frames (1h-1d) and we are expecting a bounce up to $3600 levels by end of day today.