Of bitcoin price has suddenly risen sharply in recent days. So hard, in fact, that many traders do short commodities were forced out of their positions, driving up the price even further. Last night, the price briefly crossed $21,000.
Bitcoin bron van short squeeze
We found the bottom of the past few weeks for bitcoin on December 30 around USD 16,300. After this, the price has not stopped rising – slowly at first, but during the course of last week, the price started making parabolic movements. In total, the exchange rate has risen about 30% against the dollar and about 28% against the euro. The price is now pulling back from the high.
Exactly it looks like one short squeeze to be. Of go short you make a profit if the price falls because you are actually selling the position when you don’t have it. If the price then rises instead of falling, you run the risk of having to buy back your coins at a loss.
That’s exactly what happened. According to CoinGlass $238 million in open BTC positions has been liquidated in the past 24 hours. In total, about four times as many short positions as long positions have been closed today, most of which presumably at a loss.
Still, crypto investors remain pessimistic about a possible further increase. We asked on Twitter what the expectations are after this nice rise and a majority of about 60% said they think the recent rally only gives false hope and that more pain lies ahead.
#Bitcoin has been above $21,000 for a long time. Does this mean the end of the #bearmarkt or does the rally only give false hope?
— Crypto Insiders (@CryptoinsidersS) January 14, 2023
Some altcoins also rose sharply
Also altcoins increased in price. A total of $725 million in crypto trades have been closed – $487 million of that came from altcoins. So rose ethereum (ETH) about 34% against the dollar, leading to $260 million in closed positions over the past 24 hours – again most of it at a loss. For ETH, there were even 8 times more closed shorts than closed longs.
Dogecoin (DOGE) rallied nearly 40% in recent days, but Solana (SOL) rose faster than any other major token. Measured from the bottom on December 29 to the top, the price of SOL increased by about 200%. It is possible that this is because of all the negative news around the Solana network of recent times.
