Bitcoin prepares for an enormous short squeeze, with the potential for a skyrocketing price.

Speculation is swirling that Bitcoin (BTC) may reach $80,000 as short-sellers feel the pressure from diminishing downtrends and faster uptrends, according to an analyst. The Kobeissi Letter, a trading resource, stated that this is a clear sign that shorts are being squeezed as BTC hits fresh all-time highs. The main factor behind the short squeeze is the large margin between institutional long positions and hedge fund short positions, which is at a record high. Hedge funds hold nearly 15,000 net short contracts, while institutions hold nearly 20,000 net longs. Bitcoin’s price dips are also becoming shorter and shorter. In the past seven days, the lowest point was $61,224 on March 20, while the peak was $71,511 on March 26, representing a gap of just 8.7%. If Bitcoin reaches $71,000, $156.18 million in short positions will be liquidated, and a climb to $75,000 will liquidate $3.85 billion in short positions. Swyftx lead analyst Pav Hundal believes that if there is a short squeeze, Bitcoin could go vertical to $80,000 and potentially even reach $100,000 this year. Asset managers are currently holding record amounts of long exposure to BTC, and Hundal suggests they may be hedging their bets by taking out short positions to mitigate downside exposure. The increased trading activity in Bitcoin could be in anticipation of the upcoming Bitcoin halving, which is scheduled for April 21.