Bitcoin Short Squeeze

In the past two days, Bitfinex has seen its shorts skyrocket from 31k to 39k short contracts. The vast majority of these shorts opened below $6400 in hopes that there would be a dump on the ProShares ETF denial. When the denial was announced yesterday, there was a brief, small dump followed by a huge bounce. This leaves most of these shorts trapped underwater leaving the perfect setup for a short squeeze. It should be noted that shorts are near an all-time high on Bitfinex. The last time shorts got this high was in April. If things play out like they did in April, bitcoin could go up as much as $1000 in one day.