Morgan Stanley: BTC may be forming a short squeeze, with short positions closing pushing the price to rise.

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Odaily News Odaily Planet Japan reports that the "Big Morgan" Morgan Stanley cryptocurrency strategy team pointed out that when traders bet on the fall of Bitcoin using leveraged tools, the continuous rise in price puts their margin accounts at risk of being liquidated. At this point, they must urgently repurchase Bitcoin from the market to close their positions, and this concentrated repurchase behavior further drives up the price, forming a positive feedback loop of "price rise - short positions close - price rise again." Coinglass data shows that in the past hour, long positions amounted to 5.762 billion dollars, rising by 52.94%, but the current short positions still account for 48%. Morgan Stanley stated that most shorts are concentrated at defensive points below 115,000 dollars. If the price continues to hold above 117,000 dollars, it could trigger a new round of short positions Close Position worth 500 million dollars, further strengthening the pump momentum.

BTC-2.27%
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