Bitcoin Skirts $36K Amid Dramatic Short Squeeze: What Happened?

Classic Bitcoin Price Drama

Bitcoin (BTC) showcased its infamous volatility leading up to the daily close on November 7, as a dramatic short squeeze propelled the price to nearly $36,000. For those not keeping score, volatility in the crypto market often resembles that of a rollercoaster, minus the safety harness.

The Short Squeeze Phenomenon

As traders geared up for the close, the open interest (OI) on exchanges surged, with over $15 billion in limbo. Many crypto aficionados were holding their breath, fearing a downward plunge, wondering if Bitcoin was headed for a nosedive or merely a dramatic plot twist. Spoiler alert: the shorts felt the flames as BTC quickly clambered to a peak just shy of $35,900.

Foreseeing the Surge

Trader Skew was among the few with a crystal ball, predicting this surge when BTC hit $34,800. “Open interest still building up & looking more like shorts have a higher float in the OI build-up here. A key price for a squeeze!” Skew tweeted, and it seems he was spot on. It was as if he truly had a sixth sense, or perhaps just a handy trading indicator.

Keeping Eyes on $36,000

Meanwhile, the on-chain monitoring gurus at Material Indicators made their stand, suggesting that the sky-high target of $36,000 would be just out of reach—at least for the week. “You can never say, ‘Never’ in this game, but I’d be shocked to see BTC above that threshold before the Weekly candle closes,” they mused. Perhaps they should have called this the ‘Never Say Never’ game instead!

Binance vs. Bybit: The Tale of Two Exchanges

Among the throngs of traders, an interesting twist emerged: Binance traders were leaning bearish while their Bybit counterparts were all optimistic smiles. Daan Crypto Trades noted, “Bybit perpetuals have consistently traded higher than Binance due to the clear long interest on Bybit, while Binance has been more short-orientated during this range.” It sounds like a classic case of optimism versus pragmatism—who knew trading could behave like a sitcom?

Final Words on the BTC Rollercoaster

As the dust settled, BTC traded at $35,300 on November 8, with open interest still towering over $15 billion. Remember folks, investing in crypto isn’t a stroll in the park; it’s more like a brisk jog through a maze of bears and bulls. Always do your own research and tread carefully!