Bitcoin ‘short squeeze’ sends BTC price to $35.9K as OI rises
Bitcoin (BTC) saw a notable BTC price volatility on November 7th as a “short squeeze” took the market near $36,000.
Bitcoin has reached the “key” short compression price
Data from Cointelegraph Markets Pro and TradingView followed the BTC/USD exchange's response to higher open interest (OI).
Previously, Cointelegraph reported that over $15 billion in OI is poised to trigger a new dynamic. Some feared that the final direction could lead to an unpredictable decrease in the price of BTC.
Finally, shorts felt the heat as Bitcoin made a quick advance to reach below $35,900.
Analyzing the situation before moving, the famous trader Skew and others predicted the event. Skew argued that if $34,800 was returned, the rate would increase rapidly – a series of events had then materialized.
“Open demand is still building and what appears to be shorts is a high floater here in OIO. $34,800 ~ key price to squeeze,” he told X subscribers.
Yes there was a significant increase in OI overnight – it looks like a lot of similar shorts are going into passive auctions at local lows here.
We have a huge increase in OI, perp tekers net sales, decreasing funding and limiting bids to fill. A recipe for a lovely squeeze. pic.twitter.com/F82fmNnw7F
— CrediBULL Crypto (@CredibleCrypto) November 7, 2023
On-chain tracking material The Indians reiterated their earlier statement that $36,000 would not be reached this week.
“You can never say ‘never' in this game, but based on recent Trend Precognition signals, I'd be surprised to see BTC move above $36k before the weekly candle closes,” read part of a post-Move X post, citing one of its proprietary trading indicators.
Fellow trader Dan CryptoTrades saw what he described as an “interesting change” in the derivatives composition.
Traders on the largest crypto exchange, Binance, have been keeping themselves in the dark compared to the Bitcoin exchange, but the “long squeeze” is definitely far from over.
“ByBit Perpetual trades have consistently traded higher than Binance. In this range, Binance has a more short direction while there was clear long interest in ByBit,” he summarized.
The accompanying chart compares the BTC/USDT perpetual volatility pair of the two exchanges, showing that Binance trades lower after a short period of compression.
“It will be very interesting to see how this plays out,” he concluded.
“One thing is clear and that is that Baybit traders are more bullish than Binance traders.”
The main BTC future OI flow is still visible
Financial analyst Tedtalksmacro showed the impact of the squeeze on Binance, where short open interest disappeared.
Related: Extreme Highs — Bitcoin Ordinals Send BTC Trading Fees to New 5-Month Peak
BTC shorts are destroyed.
All OI built earlier today ~$350MM, cleared in minutes. pic.twitter.com/tHU25fTUt0
— tedtalksmacro (@tedtalksmacro) November 7, 2023
BTC/USD was trading at $35,300 at the time of writing on November 8, OI is still over $15 billion, according to data from chain monitoring source CoinGlass.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
