Bitcoin [BTC] Avoids a Price Squeeze to $9,000, as Tesla Soars over Bleeding Shorts

Bitcoin [BTC] price looked prime for a run up to the $10,000 mark. The uncertainty in the market was palpable as the open interest and long orders continued to rise. However, while Bitcoin [BTC] ranged around $9350-$9600, Tesla [TSLA] logged a high at $650 on Thursday.

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Reportedly, a 11% rise in Tesla yesterday caused a short order liquidation of more than $1.5 billion.  The price has been in an uptrend since October last year.

Tesla/USD Price Daily Price Chart (TradingView)

Moreover, $TSLA has soared more than 52% in the month of the January alone. The compiled liquidations of betting against Tesla has risen to $5.2 billion for the year.

The CSO of Coinshares, Meletem Demirors, leading digital assets firm in the US tweeted, on the success of tech assets like Tesla shares, Bitcoin prices including Beyond Meat, the vegan substitute of meat. She tweeted,

On the other hand, crypto traders went on compiling long-orders looking for a breakout. However, the price got rejected from the resistance around November highs at $9590.

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Bitcoin OI Soothes Down from Dynamic Level

The Open Interest (OI) in Bitcoin [BTC] swept above $1 billion on BitMEX. Historically, such high levels of open market orders often makes it susceptible to huge volatility movements on the opposite side of the bets.

BitMEX Open Interest on Futures Contracts (Source)

Nevertheless, while there was quite a bit of uncertainty, the price did not deviate much from the $9400 mark. The overall bias technically and with strong fundamentals are still bullish.

The futures Open Interest on Huobi and Okex is rising as well. on Okex, the funding and BTC basis is positives signalling a long inclination as well.

Surprisingly, on Huobi, while the overall position seems balanced (50-50%), there is a majority traders looking for a correction.

Bitcoin Elite Trader Account Comparison on Huobi (4-hour chart)

The price of Bitcoin [BTC] at 4: 40 hours UTC is $9400. The swing lows are near $9153, while the high is near $9590.

BTC/USD 1-Day Chart on Bitstamp (TradingView)

Do you think Bitcoin [BTC] will reach 10,000 or long orders will get squeezed? Please share your views with us.

Nivesh Rustgi: Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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