Bitcoin ‘short squeeze’ sends BTC price to $35.9K as OI stays elevated

” You can never say, Never in this game, but based on the newest Trend Precognition signals, I d be really shocked to see BTC move above $36k before the Weekly candle light close,” part of a post-move X post read, referring to one of its exclusive trading indicators.BTC/ USDT order book data for Binance as of Nov. 7. Source: Material Indicators/XFellow trader Daan Crypto Trades, on the other hand, considered what he described as “a fascinating shift” in derivatives composition.Traders on the largest crypto exchange, Binance, were placing themselves bearishly compared to exchange Bybit, he kept in mind, however a “long capture” was far from certain. Theres been a clear long interest on Bybit while Binance has actually been more short orientated during this variety,” he summarized.An accompanying chart compared the 2 exchanges BTC/USDT continuous swap sets, revealing Binance trading lower after the brief capture.

BTC/USD traded at $35,300 at the time of writing on Nov. 8, with OI still beyond $15 billion, per information from on-chain monitoring resource CoinGlass.Bitcoin futures open interest chart (screenshot). Source: CoinGlassThis post does not include investment guidance or recommendations. Every investment and trading relocation involves risk, and readers ought to conduct their own research study when making a decision.

Bitcoin (BTC) saw timeless BTC cost volatility into the Nov. 7 daily close as a “brief squeeze” took the market near $36,000. Source: TradingViewBitcoin strikes “key” brief capture priceData from Cointelegraph Markets Pro and TradingView followed BTC/USD as it reacted amid extremely raised open interest (OI) on exchanges.Previously, Cointelegraph reported on the more than $15 billion in OI being apt to trigger a fresh round of volatility. $34,800 ~ key rate for a capture,” he told X subscribers.Yup there was a substantial rise in OI overnight- it seems to be more of the exact same- shorts affecting into passive quotes here at the regional lows.We have a huge rise in OI, perp takers net selling, funding reducing, and limitation bids being filled.

Bitcoin (BTC) saw timeless BTC cost volatility into the Nov. 7 day-to-day close as a “brief capture” took the market near $36,000. Source: TradingViewBitcoin hits “key” short squeeze priceData from Cointelegraph Markets Pro and TradingView followed BTC/USD as it responded in the middle of highly elevated open interest (OI) on exchanges.Previously, Cointelegraph reported on the more than $15 billion in OI being apt to spark a fresh round of volatility. $34,800 ~ key price for a capture,” he informed X subscribers.Yup there was a substantial increase in OI overnight- it seems to be more of the exact same- shorts affecting into passive quotes here at the local lows.We have a huge rise in OI, perp takers net selling, moneying reducing, and limit bids being filled. Theres been a clear long interest on Bybit while Binance has actually been more short orientated throughout this range,” he summarized.An accompanying chart compared the 2 exchanges BTC/USDT perpetual swap pairs, revealing Binance trading lower after the short capture.

Other Questions People Ask

What caused the Bitcoin ‘short squeeze’ that sent BTC price to $35.9K?

The Bitcoin ‘short squeeze’ was primarily driven by a significant increase in open interest (OI) on exchanges, which reached over $15 billion. This surge in OI indicated that many traders were betting against Bitcoin, creating a scenario where a rapid price increase forced these short positions to close, further driving up the price. As a result, BTC approached the key resistance level of $36,000, showcasing the volatility typical of the cryptocurrency market.

How does elevated open interest impact Bitcoin prices during a short squeeze?

Elevated open interest indicates a high level of trading activity and positions in the market, which can lead to increased volatility. In the case of Bitcoin, when OI is high and a short squeeze occurs, it can trigger a rapid price increase as short sellers are forced to buy back their positions. This dynamic creates a feedback loop where rising prices lead to more short positions being closed, further propelling BTC upwards, as seen when it reached $35.9K.

What role do exchanges like Binance and Bybit play in the Bitcoin short squeeze?

Exchanges like Binance and Bybit play crucial roles in shaping market sentiment and trading strategies. During the recent short squeeze, Binance exhibited a more bearish positioning compared to Bybit, which had a clearer long interest. This divergence in trader behavior across exchanges contributed to the dynamics of the short squeeze, as traders on Binance faced pressure from rising prices while those on Bybit were positioned to benefit from the upward movement.

What should traders consider when analyzing Bitcoin’s price movements during a short squeeze?

Traders should closely monitor open interest levels and the composition of long versus short positions on various exchanges. Understanding these metrics can provide insights into potential price movements during a short squeeze. Additionally, keeping an eye on key price levels, such as the $34,800 mark mentioned in the analysis, can help traders identify critical points for potential entry or exit strategies as volatility increases.

How can traders prepare for potential volatility following a Bitcoin short squeeze?

To prepare for potential volatility after a Bitcoin short squeeze, traders should establish clear risk management strategies, including setting stop-loss orders and defining profit targets. Staying informed about market sentiment and open interest trends can also help traders anticipate price movements. Furthermore, utilizing technical analysis tools to identify support and resistance levels can aid in making informed trading decisions during periods of heightened volatility.