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.
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.
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.
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.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.