{"id":139365,"date":"2021-01-29T21:00:04","date_gmt":"2021-01-29T15:30:04","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=139365"},"modified":"2021-01-29T18:53:24","modified_gmt":"2021-01-29T13:23:24","slug":"bitcoins-unexpected-price-surge-sees-558m-shorts-liquidated","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/bitcoins-unexpected-price-surge-sees-558m-shorts-liquidated\/","title":{"rendered":"Bitcoin’s unexpected price surge sees >$558M shorts liquidated"},"content":{"rendered":"

Until a few hours ago, Bitcoin’s<\/a> price was expected to continue stagnating on the charts. With most of the cryptocurrency’s technical indicators wearing a bearish hue, many in the community expected the world’s largest cryptocurrency to trade within the $31,000-$33,000 range in the near-term.<\/p>\n

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Source: TradingView<\/a><\/figcaption><\/figure>\n

However, a major opening for the price came in the form of SpaceX CEO Elon Musk after he ‘merely’ updated his Twitter bio with the word – Bitcoin. While a minor update, it had an exponentially bullish effect on the price performance of the cryptocurrency, with market traders pushing the crypto’s value by a whopping 16 percent in an hour’s time.<\/p>\n

At press time, Bitcoin was continuing to hold a position very close to the $37,000-price range.<\/p>\n

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Source: Glassnode<\/a><\/figcaption><\/figure>\n

However, while price spikes are usually a celebratory affair in any market, short-sellers had to bear the brunt of this unexpected endorsement from Musk and the resulting price surge. Glassnode’s data highlighted that in a brief span of 10 minutes, close to $57M in short positions on Binance were liquidated. In the hours that followed, Binance saw over $201 million short positions undergo liquidation.<\/p>\n

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Source: ByBt<\/a><\/figcaption><\/figure>\n

According to market data provided by Bybt, in the hours that followed, a whopping $558 million were liquidated from traders who had opened short positions for the coin. Today’s Bitcoin pump saw the coin’s price trajectory make a stunning U-turn after having endured quite a bit of price stagnation and sideways movement during the course of the past few days.<\/p>\n

This move by Bitcoin has also translated to increased volatility for the king coin. According to BitPremier’s data, Bitcoin volatility also hit a 6-month high. The 30-day BTC\/USD volatility stood at 5.66 percent, at press time, having risen from around 3.29 percent at the start of the year.<\/p>\n

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COT analysis on #Bitcoin<\/a> done for @elonmusk<\/a> and #wallstreetbets<\/a> <\/p>\n

CME having around 50,000 OI (or $2bln value) on $BTC<\/a> futures contract. 60% of all OI is held by leveraged funds.<\/p>\n

These funds hold 76% of all SHORT positions!!!
To whom will these funds cry in few weeks when they\ud83d\udca9 pic.twitter.com\/e1lexPvG7G<\/a><\/p>\n

— How Options (@HowOptions) January 29, 2021<\/a><\/p><\/blockquote>\n