Bitcoin shorts are suddenly under fire as a short squeeze pushes BTC price action to levels not seen since before the Binance regulatory debacle.
Bitcoin $28,369 On March 29, the price of Bitcoin returned to $28,000 as a classic short squeeze pushed the market to a five-day high.
BTC liquidations increase as Bitcoin reverses losses on Binance
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $28,159 on Bitstamp.
The sudden rise is provided by an exchange where a group of shorts are “blown away” to remove resistance and allow higher levels to return.
As analyst Skew points out, these shorts are left over from Bitcoin’s previous trend and are worth around 1,500 BTC.
“It looks like the previous rally was heavily shorted and those shorts just got blown out,” part of the accompanying commentary said.
According to data from analytics resource Coinglass, total BTC short liquidations on March 29 were approaching $20 million at the time of writing.
Monitoring resource Material Indicators noted other changes on Binance’s spot order book.
In anticipation of the U.S. macroeconomic data to be released on March 31, traders appear to be positioning themselves for a potential buying opportunity on the downside once again.
"Meanwhile, prices are surging. If bulls run out of steam before clearing $28,000, things could get tricky," the commentary acknowledged.
Bitcoin faces ‘serious liquidity questions’ before $30,000
As a result, BTC’s price action effectively erased any traces of losses caused by the news that the largest cryptocurrency exchange, Binance, was in the crosshairs of U.S. regulators.
Previously, the market generally supported BTC/USD returning to test lower support levels, which were mainly centered on the 200-week moving average around $25,500.
At the same time, Skew acknowledged that in order for the short-term rally to continue, bulls will need to muster some strong buying power.
“Liquidity requirements between $28k and $30k are high, and will require some pretty big market buying to get through here,” another tweet read.
C3 Tip: The views, thoughts and opinions expressed here are the author's own and do not constitute investment advice or recommendations. Every investment and transaction involves risk.
