Analysis: BTC has broken through 78,000 USD, and there is a high possibility of a short squeeze in the short term

According to The Block, the price of Bitcoin has surpassed $78,000, and the Fear and Greed Index has moved out of the extreme fear zone. K33 Research indicates that Bitcoin may maintain its upward momentum, with a high likelihood of more short squeezes occurring in the short term.

The K33 report points out that in the past week, interest rates have continued to decline, while prices have climbed to a three-month high. The open interest has been steadily increasing, and the lows are also being raised. The leverage ratio is gradually rising, combined with extremely low interest rates, indicating that short positions are steadily increasing, which not only raises the possibility of future short squeezes but also increases their potential scale.