Bitcoin breaks above $84,000, but shorts are what got wiped out
This morning, Bitcoin touched $84,700, its highest level in two weeks, up about 2.5% over 24 hours. The price looks like a rebound, but open positions tell you who’s really driving it.
Over the past 24 hours, $85.43 million in positions were liquidated, 74.5% of them shorts. At the same time, futures open interest climbed to $56.41 billion, up 5.31% in a day. Rising prices, growing open interest, and liquidated shorts together suggest this move is a short squeeze—not new money building long positions.
The backdrop isn’t hard to find: all three major U.S. stock indexes closed higher overnight, with the Nasdaq up 1.05%; the 10-year Treasury yield returned to 5.111%; and oil held steady around 108. Risk appetite has picked up a little, and leverage has followed. The Fear and Greed Index is at 55, in neutral territory.
$BTC is now near the weekly high of 84,726. Only a break above that level puts 86,090 in play. But a rebound driven by a short squeeze is supported by different forces than one driven by buying.
Which do you pay more attention to: how quickly open interest is rising, or whether ETFs are joining in?
This morning, Bitcoin touched $84,700, its highest level in two weeks, up about 2.5% over 24 hours. The price looks like a rebound, but open positions tell you who’s really driving it.
Over the past 24 hours, $85.43 million in positions were liquidated, 74.5% of them shorts. At the same time, futures open interest climbed to $56.41 billion, up 5.31% in a day. Rising prices, growing open interest, and liquidated shorts together suggest this move is a short squeeze—not new money building long positions.
The backdrop isn’t hard to find: all three major U.S. stock indexes closed higher overnight, with the Nasdaq up 1.05%; the 10-year Treasury yield returned to 5.111%; and oil held steady around 108. Risk appetite has picked up a little, and leverage has followed. The Fear and Greed Index is at 55, in neutral territory.
$BTC is now near the weekly high of 84,726. Only a break above that level puts 86,090 in play. But a rebound driven by a short squeeze is supported by different forces than one driven by buying.
Which do you pay more attention to: how quickly open interest is rising, or whether ETFs are joining in?