Against the backdrop of a sudden change in market sentiment, Bitcoin, the world's leading cryptocurrency, has seen a significant surge in today's brief liquidation process.
Surprisingly, short positions in the market rose sharply on Monday, according to a report by GlassNode, a crypto data analytics platform. This sentiment change comes as Bitcoin price rebounds rapidly from $105,000 to $107,000.
After several days of continued decline in capital interest rates, showing that traders are gradually closing positions, the price of Bitcoin has rebounded significantly. This volatility cleared short traders who bet that cryptocurrencies will continue to fall.
The sudden reversal drove the price of Bitcoin to rise rapidly and stabilized between $105,000 and $107,000 in a few hours. As Bitcoin prices soared, traders who shorted the asset suffered a lot of liquidation during the same period of time.
It is worth noting that GlassNode pointed out that in just 4 hours, the total short liquidation jumped 240% from the 24-hour moving average (SMA).
Data sources show that as the entire crypto market experienced price declines many times last week, many traders had previously established short positions and expected Bitcoin prices to fall further.
However, this week's market trend began to turn upward, forcing traders to close short positions and market sentiment turned bullish.
According to CoinMarketCap data, although similar short squeezes usually trigger short-term surges in related cryptocurrencies prices, Bitcoin's performance continues to be strong, with the price reaching $108,320.14 at the time of writing.
In the past 24 hours, the price of Bitcoin has risen by 1.90%, and the trading volume has stabilized at about 108,000 BTC.
The current trading momentum shown by Bitcoin shows that more and more FOMO (fear of missing out) traders are beginning to enter the market.
Although a considerable number of traders have bet that Bitcoin prices will continue to fall, the growing liquidation pressure has prompted them to adjust their strategies, fearing missing out on opportunities for further price increases.
In addition, the latest data shows that after this round of price increases, 96.6% of the total Bitcoin in circulation is currently in profitability. This means that only a very small number of holders have higher costs than the current market price. If the bull market trend continues, more investors will return to profitability.
Although Bitcoin hit an all-time high in May, hitting $111,970.17, traders still have high expectations for breaking this high.
The above is the detailed content of Bitcoin shorts rose 240% at BTC price.. For more information, please follow other related articles on the PHP Chinese website!

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