Bitcoin (BTC) experienced typical BTC price volatility at the close on November 7, with a “short squeeze” taking the market close to $36,000.
Bitcoin Hits ‘Key’ Short Squeeze Price
Data comes from Cointelegraph Markets Pro and trading view Following the move in BTC/USD, it reacted amid a sharp rise in open interest (OI) on exchanges.
Previously, Cointelegraph reported that OI exceeding $15 billion is likely to trigger a new round of volatility. Some are worried that Bitcoin prices will fall, but the ultimate direction is unknown.
Finally, bears felt the pressure as Bitcoin quickly rose and peaked just below $35,900.
The famous trader Skew and others predicted this event in advance by analyzing the situation before the trend. Skew believes that if $34,800 returns, momentum will quickly build – and a chain of events then materializes.
“Open interest is still increasing and it looks more like the shorts have higher liquidity in open interest. $34,800 ~ the key price for the squeeze,” he said Tell X Subscribers.
Yes, open interest rose significantly overnight – it appears to be more of the same – with shorts engaging in passive buying at the local lows.
Our OI is up significantly, perp takers are net selling, funding is down, and limit bids are being filled. A great squeeze recipe. pic.twitter.com/F82fmNnw7F
— CrediBULL Crypto (@CredibleCrypto) November 7, 2023
On-chain monitoring resource Material Indiators reiterated previous claims that $36,000 will not be available this week.
“You can never say ‘never’ in this game, but based on the latest trend prediction signals, I would be very surprised to see BTC break $36,000 before the weekly candle closes,” X posted after moving part readreferring to one of its proprietary trading indicators.
Meanwhile, trader Daan Crypto Trades has also noticed what he calls an “interesting shift” in the makeup of derivatives.
He said traders on the largest exchange Binance are positioning themselves bearishly compared to exchange Bybit famousbut a “long squeeze” is far from certain.
“Bybit’s perpetual contract has been trading higher than Binance. Within this range, people have shown clear long interest in Bybit, while Binance is more biased toward short positions.” He concluded.
The accompanying chart compares the BTC/USDT perpetual swap pair on both exchanges, showing Binance trading lower following a short squeeze.
“It will be very interesting to see how this problem is solved,” he concluded.
“One thing that is clear is that Bybit traders are more optimistic than Binance traders.”
Major BTC futures holding wave is still to come
Financial commentator Tedtalksmacro showed the impact of the tightening on Binance, with short positions disappearing.
Related: Unusually high – Bitcoin ordinal pushes BTC transaction fees to 5-month high
BTC shorts were wiped out.
All OI established earlier today, approximately $350MM, was wiped out within minutes. pic.twitter.com/tHU25fTUt0
— tedtalksmacro (@tedtalksmacro) November 7, 2023
As of this writing on November 8, BTC/USD is trading at $35,300, with open interest still exceeding $15 billion, according to data from on-chain monitoring resources coin glass.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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