Bitcoin (BTC) experienced its classic price volatility on November 7 as a "short squeeze" pushed the market to nearly $36,000. This surge in price occurred amidst a period of highly elevated open interest (OI) on exchanges.
Bitcoin Hits Key Price During Short Squeeze
Data from Cointelegraph Markets Pro and TradingView closely tracked the reaction of BTC/USD as it soared in response to the elevated open interest. Previously, it was reported that the over $15 billion in OI could potentially trigger a new round of volatility, with the direction of the price uncertain.
Ultimately, the shorts felt the pressure as Bitcoin quickly gained momentum and reached a high just below $35,900.
Predictions and Observations
Leading trader Skew and others accurately predicted this event. Skew had argued that if Bitcoin were to return to $34,800, momentum would increase rapidly. This prediction turned out to be true.
On-chain monitoring resource Material Indicators also previously stated that $36,000 would remain out of reach for the week. However, they acknowledged that nothing is certain in this game and that surprises can always happen.
Another trader, Daan Crypto Trades, noticed an interesting shift in the derivatives composition. He observed that traders on Binance were positioning themselves bearish, while those on Bybit were more long-oriented. However, it was uncertain whether a "long squeeze" would occur.
Future Implications
Financial commentator Tedtalksmacro highlighted the impact of the short squeeze on Binance, where short open interest disappeared. At the time of writing on November 8, BTC/USD was trading at $35,300, with OI still exceeding $15 billion.
It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research before making any decisions.
