The bears are nursing their wounds after an awful week in the Bitcoin market. The leading cryptocurrency saw a sudden increase that sent its price skyrocketing, much to the chagrin of short-squeeze sellers who bet against it. Data from Cointelegraph Markets Pro shows that short liquidations on major exchanges exceeded $100 million in the past 24 hours, which is a convincing win for Bitcoin bulls.
Bitcoin Flips Over $22,00 Shorts Catch Major Fire
569 Early Tuesday morning GMT+8, the rally started when Bitcoin broke through the $21,000 resistance level and immediately moved up to $22, no. This upward momentum lasted through the day pushing bitcoin prices up to $22,800 before a slight pullback. As of the publication date, Bitcoin is trading at around $22500 and has gained more than 15% in one day.
These are investors who borrow and also sell Bitcoin at a high price to buy it again later when its value has gone down to realize some profit in between. However, a fast price hike may oblige short-sellers to buy back bitcoins at a loss. they will sustain since it is an action that helps them minimize their losses and turn out a self-fulfilling prophecy known as a “short squeeze”.
Bitcoin’s Future Still Up in the Air for Analysts
Bitcoin bulls have their recent rally as a significant victory, but analysts and forecasters disagree on the direction of cryptocurrency. Others think that the jump is merely a starting point for an ongoing bull run, with more institutional adoption and optimism in the market. Others warn that there may be retracements, pointing out technical indicators showing conditions of buying overdone and the possibility of profit-taking by early bulls.
Ripple Effects Felt in Cryptocurrency Market.
Ethereum, the second-largest cryptocurrency by market cap in the world is up over 8%, and Binance Coin and Cardano have both increased around 5%.
Bitcoin’s rapid boom and the following short squeeze is a sobering reminder of how volatile the cryptocurrency market can be. Though the recent price movement offers some nice tailwinds for those bullish, it is important to maintain a cautious view as there may be additional volatility in store over the coming weeks.