My theory was that crypto whale traders swooped in late last year not merely because of the 85% decline in BTC but because of a key technical trading factor – and nothing more.
Willy Woo confirms that the recent price rise was driven more by whales buying and trying to manufacture a short squeeze.
Willy Woo points out bitcoin short squeeze | Source: Twitter
This is both good news and bad news for bulls.
Good News for BTC Bulls
The good news is that bitcoin will behave like most low-float illiquid stocks.
With low-float illiquid stocks, the limitation on share count means that the stock will always be subject to high levels of volatility and large spreads on the bid-ask.