Bitcoin Experiences Volatility, Short Squeeze Jolts Market Close to $36,000
Summary:
Bitcoin experienced a significant price fluctuation on November 7, leading to a "short squeeze," which pushed the market value close to $36,000. This move was previously anticipated by traders like Skew if values returned to $34,800. Notably, traders' behaviors showed discrepancies between exchanges, with Binance traders leaning bearish compared to Bybit traders. Bitcoin was trading at $35,300 as of November 8, with open interest surpassing $15 billion.
On November 7, Bitcoin (BTC) experienced a typical price fluctuation that led to a "short squeeze," catapulting the market close to $36,000. The movement followed elevated open interest (OI) on trading platforms observed by Cointelegraph Markets Pro and TradingView. Earlier, Cointelegraph underlined the potential of over $15 billion in OI to trigger heightened volatility, with speculation regarding potential downsides for the BTC price and uncertainty around its future direction.
The Bitcoin market saw rapid gains, maxing out just shy of $35,900 as short-sellers scurried. Renowned trader Skew and other analytic figures had predicted this momentum surge if the value returned to $34,800, a forecast that ultimately proved accurate.
According to on-chain analysis platform Material Indicators, their previous conclusion that Bitcoin would not surpass $36,000 this week still holds. Daan Crypto Trades, another trader, pointed out a fascinating evolution in the composition of derivatives, with Binance traders leaning bearish in contrast to Bybit traders. However, a "long squeeze" was still not a certainty.
A comparison of the two exchanges’ BTC/USD perpetual swap pairs revealed Binance trading at lower values following the short squeeze. Financial commentator Tedtalksmacro highlighted the effect of the squeeze on Binance, where short open interest rapidly diminished.
Bitcoin was trading at $35,300 as of November 8, with open interest still exceeding $15 billion according to on-chain monitoring tool CoinGlass. This piece does not provide investment advice or suggestions. All investment and trading activities carry risk, and one should undertake their own investigation before deciding.
Published At
11/8/2023 6:54:43 AM
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