Bitcoin tumbles to new multi-year low of $58,000, but a short-squeeze setup emerges
Derivatives markets signal that betting on further slide in prices is getting overcrowded, setting up for a potential snapback.
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Summary
- Bitcoin quickly plunged 5% to $58,000 in early Thursday U.S. trading, its lowest level since 2024.
- Derivatives and order-book data show crowded short positioning and stronger buy orders below the market, suggesting conditions are ripe for a short squeeze despite bitcoin’s ongoing downtrend.
