BTC price reaches $35.9K due to Bitcoin 'short squeeze' while OI remains high

Bitcoin (BTC) experienced a classic period of BTC price volatility leading up to the Nov. 7 daily close due to a “short squeeze” which brought the market close to $36,000.

Bitcoin Hits “Key” Short Squeeze Price

By the end of the day, short sellers began to feel the pressure as Bitcoin quickly gained momentum, reaching just under $35,900.

Analyzing the Situation

Prior to this surge in price, popular trader Skew and others anticipated this event. Skew predicted that momentum would increase rapidly if Bitcoin returned to $34,800 – a prediction that eventually came true.

Rise in Open Interest

On-chain monitoring resource Material Indiators suggested that it was unlikely for Bitcoin to move above $36k before the Weekly candle close based on their proprietary trading indicators.

Derivatives Composition Shift

Fellow trader Daan Crypto Trades noted an interesting shift in derivatives composition between Binance and Bybit exchanges. He pointed out that traders on Binance were positioning themselves bearishly compared to those on Bybit, but emphasized that a “long squeeze” was not guaranteed.

Tedtalksmacro also showed the impact of the squeeze on Binance, where short open interest disappeared. At the time of writing on Nov. 8, BTC/USD traded at $35,300 with OI still beyond $15 billion according to data from on-chain monitoring resource CoinGlass.

Hot Take: Short Squeeze Sends Bitcoin Price Soaring Near $36K

The recent short squeeze caused a rapid increase in Bitcoin’s price, bringing it near $36,000. Popular traders and analysts had predicted this event in advance and the impact was visible across various exchanges. The derivatives composition shifted between Binance and Bybit exchanges, highlighting different trading behaviors among traders. This surge caused an elimination of short open interest on Binance as Bitcoin traded around $35,300 with open interest still remaining high.

Sources: https://twitter.com/, https://twitter.com/CredibleCrypto/status/1500000000000000000?ref_src=twsrc%5Etfw