This morning, I was absolutely stunned by Bitcoin (BTC)'s explosive rally. It shot straight from 75,736 to 81,196—a gain of over 7%!
I saw everyone in the group celebrating, saying the shorts had been crushed. I quickly checked the data, and wow: $5.595 billion in liquidations across the market in 24 hours, with shorts accounting for $3.6 billion of that! I thought, since all the shorts are wiped out, would buying now be a sure win?
But after staring at the chart for a while, I noticed a detail that made me uneasy.
The chart actually showed that even though prices had risen, open interest had fallen! BTC open interest was down 6.3%, and ETH was down a whopping 22.29%! What does that mean? After thinking it over, could this rally actually be driven not by big money buying in, but by shorts being forcibly liquidated and “buying” the price up? Once all the shorts are gone, will there be no one left to carry the rally, causing prices to drop?
The chart also mentioned that 81,196 is a major hurdle overhead. Looking at the current price (80,432), it really does seem to be stuck between 80,300 and 80,700.
I saw everyone in the group celebrating, saying the shorts had been crushed. I quickly checked the data, and wow: $5.595 billion in liquidations across the market in 24 hours, with shorts accounting for $3.6 billion of that! I thought, since all the shorts are wiped out, would buying now be a sure win?
But after staring at the chart for a while, I noticed a detail that made me uneasy.
The chart actually showed that even though prices had risen, open interest had fallen! BTC open interest was down 6.3%, and ETH was down a whopping 22.29%! What does that mean? After thinking it over, could this rally actually be driven not by big money buying in, but by shorts being forcibly liquidated and “buying” the price up? Once all the shorts are gone, will there be no one left to carry the rally, causing prices to drop?
The chart also mentioned that 81,196 is a major hurdle overhead. Looking at the current price (80,432), it really does seem to be stuck between 80,300 and 80,700.
