Analysis: BTC breaks through $78k, and there is a high possibility of a short-term short squeeze.

ChainCatcher reports that, according to The Block, Bitcoin’s price has surpassed $78,000, and the fear and greed index has moved out of the extreme fear zone. K33 Research states that Bitcoin may continue its upward momentum, with a high likelihood of more short squeezes in the short term.

K33’s report indicates that over the past week, interest rates have further declined, while prices have risen to a three-month high. The open interest continues to increase, with the lows also rising. Leverage ratios are gradually rising, and combined with extremely low interest rates, this suggests that short positions are steadily growing, which both increases the potential for future short squeezes and amplifies their possible scale.