Analysis: Short Positioning Could Be the Fuel for the Next Leg Up, Market Awaits Bitcoin Volatility Downtrend
BlockBeats News, October 24th, CryptoQuant analyst Axel Adler Jr posted that the macro-level Bitcoin heat has dropped to the bottom/accumulation area, indicating a recent decrease in speculative pressure. In a bull market, the decline in macro heat aligns with the holding accumulation period before the next growth phase. To achieve a rebound, volatility needs to decrease, and no negative trigger should occur globally within a week.
On the daily chart, Bitcoin's volatility remains high, but the slope has started to decline. As long as there is no external shock globally that could lead to a U.S. stock market decline, the market can cash out the accumulated short positions in preparation for the next round of rebound when the index starts to fall. Shorts have accumulated significant positions, and once volatility begins to decrease, these short positions will become the fuel for the next surge.
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