Key Factors Behind the Historic High Reached on November 6
Record Short Liquidation: Today's short liquidation is expected to exceed $200 million, marking the largest single-day short squeeze since the 15,500 point level. The phenomenon of shorts being forcibly liquidated has caused significant volatility in the market, indicating that the sentiment for shorting is facing severe challenges.
Historic Increase in Trading Volume: Today's market trading volume has also reached a historic high. The enormous trading volume reflects substantial inflows and outflows of capital in the market, which typically indicates that significant funds are driving major market fluctuations. Both buyers and sellers have played important roles in this round of volatility.
BTC Hits New High, but ETH Fails to Follow Suit: While Bitcoin has reached a new high, Ethereum has failed to break through the critical resistance level of $2820. In contrast, last year when Bitcoin hit a new high, Ethereum also broke through similar technical resistance levels at the same time. This discrepancy may suggest that ETH's movement is relatively lagging, or that market confidence in ETH's rise is temporarily lacking.
Is BTC a False Breakout?: Currently, it remains to be seen whether BTC's new high is a false breakout, especially regarding whether a weekly top divergence will form this month. If Bitcoin fails to maintain its upward movement after the breakout, accompanied by signals of technical divergence, there may be a risk of price retracement, a trend that will be clearly validated within this month.
