As a result of the overnight increase in Open Interest (OI), the market is preparing to meet Bitcoin (BTC) short traders with a new uptrend.
This trend was predicted by market analyst CrediBULL Crypto, who noted that Bitcoin volume trends have created favorable conditions for a crunch that could propel the price higher.
Bitcoin (BTC) Resilience Hurts Short Sellers
The present volatility in the price of Bitcoin presents a significant peril to the financial resources of short sellers.
At present, the coin’s value is $35,217.97, representing a 2.3% increase, while the volume of transactions surged by 11.89% to reach $15,318,050,817.
The chart presented below demonstrates that this trend is significantly decimating short speculators.
This chart may result from perpetual bidders declining to sell, thereby reducing futures market funding.
CoinGlass data indicates that in the preceding four hours, a cumulative value of $50.31 million worth of cryptocurrencies was liquidated.
Although long traders continue to account for most of this liquidation with $29.47 million, the amount liquidated by short traders has increased to $21.02 million.
The dynamics have undergone an even more intriguing shift over the past hour, as short sellers have liquidated $14.43 million in volume, which is significantly greater than the longs’ $1.33 million.
Regarding this development, CrediBULL Crypto opined that there would be little resistance on the way forward but that $35,400 would be an important threshold to monitor.
Continued Optimism Regarding Bitcoin
CrediBULL Crypto, one of the most prominent crypto analysts, is certain Bitcoin is set for its next significant rally.
Although obstacles for Bitcoin’s ascent cannot be ruled out, the analyst recommends monitoring the $34,600 level as a local invalidation or support zone.
It is prudent to monitor the future of Bitcoin, the leading cryptocurrency, given its 114% year-to-date growth.
Amid ongoing expectations among market participants regarding the potential authorization of a Bitcoin spot ETF by the US SEC, the current disparity in capital utilization on the futures market may soon become a cause for concern.
Further inherent volatility is expected as the year draws to a close; however, Bitcoin (BTC) may pull off an extraordinarily bullish performance aided by ETF sentiment and the approaching halving.