Bitcoin: How large-scale short selling helped BTC break through $67,000
This month, Bitcoin was hit hard by leverage. Let's take a look at how the wave of short liquidation this week stirred up the BTC market.
Bitcoin (BTC) easily broke the $66,000 mark, but behind this is the blood and tears of many people, especially those traders who bet that BTC would hover around $64,000.
Some people speculate that BTC may take a breath and pull back around $65,000.
After all, BTC has been soaring since the second week of September, and it is natural for profit-taking to cash out.
With this expectation, short positions have risen sharply, but the price continues to rise, and the shorts are embarrassed because their positions are not enough.
A look at the data from Hyblock Capital shows that short positions have increased sharply in the past three days, which coincides with the fatigue of BTC bulls from September 20 to 23.
Some people wonder, are the shorts going to turn the tables?
On September 23, Binance's net shorts soared, followed by a wave of short liquidations. There was another wave the next day, but the liquidation volume was a little less. On September 26, there was another small climax, and the liquidation volume increased again.
Yesterday was even funnier. The BTC price suddenly went in the opposite direction, and the shorts were caught off guard and were directly liquidated. This is quite consistent with the previous observation that long-term holders did not sell much and the mining output was still rising.
Looking at the leverage of Bitcoin, the shorts may have added enough leverage, and this liquidation caused a run.
CryptoQuant data said that the leverage ratio dropped a bit in August, and now it has soared back, which is comparable to that in October 2023.
In the past 24 hours, the short liquidation volume has soared by 591%, with as many as 635 times. Although it is a small matter compared to the peak of 12,118 times on September 20, it is still a lot.
This short squeeze and liquidation shows that BTC now has a large risk exposure and is particularly sensitive to leverage.
#热门话题 #比特币盈利供应能否推动价格上涨？ #美联储11月降息预期升温
At present, I have locked in a potential dark horse coin that is about to soar. Doubling is just an easy jump! The bigger goal is to carefully select a batch of potential coins that are expected to explode before the end of the year. I will announce the specific big moves later. Click on the avatar to follow me and share directly!
