[Analysis] "Bitcoin (BTC), Long-term Investor Selling Pressure Eases... Will It Rise Further with a Short Squeeze?"

Bitcoin (BTC) is seeing an increased possibility of rising as the selling pressure from long-term investors eases, according to analysis.

On the 30th, cryptocurrency specialist media CoinDesk reported, "Long-term investors are reducing their Bitcoin holdings, but the market outlook remains positive," adding, "Historically, when Bitcoin held by long-term investors has sharply decreased, Bitcoin prices have shown a strong upward trend."

Markus Thielen, founder of 10X Research, analyzed, "Every time the Bitcoin holdings of long-term holders have sharply decreased, a strong rally has occurred," and noted, "Currently, the holdings of long-term holders are decreasing, and Bitcoin is likely to experience a 'short squeeze' upwards." However, it is observed that the selling pressure from long-term holders has recently somewhat slowed.

The media explained, "Recently, Bitcoin held by long-term holders has decreased to 13 million BTC," adding, "With strong demand inflow, about 1.1 million BTC has been absorbed by short-term investors. Long-term investors are adopting a cautious selling strategy."

While the Bitcoin held by exchanges continues to decrease, it is also analyzed that supply liquidity remains high. The media added, "Typically, a decrease in Bitcoin held by exchanges is interpreted as a bullish signal, but this decrease may be due to an increase in Bitcoin moving to ETF wallets."

Meanwhile, a short squeeze refers to a situation where investors who have shorted Bitcoin buy it to cover their short positions or reduce losses when the price of Bitcoin rises.