Bitcoin (BTC) Shorts Obliterated Amid Surge in Open Interest

Godfrey Benjamin
November 8, 2023
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The market has no mercy on Bitcoin (BTC) short traders as a new uptrend is brewing in response to the rise in Open Interest (OI) observed overnight. This trend was predicted by market analyst CrediBULL Crypto who noted that the trends around Bitcoin volume have set the stage for a nice squeeze that can drive price upward.

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Bitcoin (BTC) Resilience Hurting Short Sellers

The current price action of Bitcoin is posing a serious threat to the capital base of short sellers. The coin is currently trading at $35,217.97, up by 2.3% as trading volume soared by 11.89% to $15,318,050,817.

With this trend, short traders are notably being obliterated as showcased by the chart shown below. This chart potentially stems from the perpetual takers who have refused to sell, decreasing funding in the futures market. 

Bitcoin (BTC) shorts chart

To put it in proper perspective, data from CoinGlass shows that a total of $50.31 million worth of crypto has been liquidated in the past 4 hours. While long traders still dominate this liquidation with $29.47 million, the proportion of the volume from short traders liquidated has grown to $21.02 million. 

The dynamics even present a more interesting shift in the past hour as the liquidated volume from short sellers is $14.43 million, far outpacing that of the longs at $1.33 million. Commenting on this trend, CrediBULL Crypto noted that there will be little resistance moving forward, but that the $35,400 level is one key level to keep an eye on.

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Optimism Around Bitcoin Remain

CrediBULL Crypto is one of the mainstream crypto analysts with deep convictions that Bitcoin is primed for its next major rally. While hurdles cannot be ruled out for Bitcoin in its journey up, the analyst forecasts the $34,600 as a local invalidation level or support zone to watch.

Bitcoin’s outlook is worth keeping an eye on seeing the premier coin has grown by 114% year to date. As market stakeholders keep up anticipation for a potential approval of Bitcoin spot ETF by the US SEC, the imbalance in capital usage in the futures market can serve as a trigger to watch out for in the near term.

As the year journeys to a close, more inherent volatility are imminent but the ETF sentiment, complemented by the upcoming halving can help Bitcoin (BTC) pull a remarkable bullish stunt.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.