Bitcoin [BTC] Bulls Regain Control as Short Squeeze Injects Hope Into the Market

After hovering around the $60,000 mark for quite some time, Bitcoin [BTC] witnessed some positive price movement, injecting hope into optimistic bulls.

Bitcoin [BTC] price movements have been closely watched by traders, especially in light of the recent positive price action. This development has brought optimism to the bulls, while simultaneously leading to a large number of short positions being liquidated.

According to data from Coinglass, over $1.1 billion in short positions were liquidated across major exchanges in the last 24 hours. This occurred as BTC price rose and triggered margin calls or forced short sellers to buy back BTC to close their positions.

In response to rising prices, short sellers faced margin calls from exchanges to maintain their positions or were compelled to buy back BTC to close their shorts. This buying pushed prices even higher, attracting more buyers to join the rally.

This cycle could lead to dramatic price increases for BTC, exceeding initial expectations. However, it's important to note that while short squeezes can benefit bulls positioned correctly, they also introduce high risks for everyone involved due to the potential for the market to reverse course and liquidate traders as prices experience violent movements.

Despite these factors, the bulls have shown no signs of slowing down.

Binance traders bullish

AMBcrypto recently analyzed Coinglass data and found that 75% of open positions on Binance in the last 24 hours were long bets, indicating a bullish bias.

This sentiment was particularly evident for BTC/USDT perpetual contracts, the most heavily traded crypto pair on Binance.

The trend suggested that many retail traders on Binance were optimistic about Bitcoin’s potential for growth, even amidst the market uncertainties.

They were likely looking past the short-term volatility and expecting a further surge in price.

Institutional interest rises

Adding to this positive sentiment, Wall Street was also showing renewed optimism around BTC.

After a few days of negative net inflows into Bitcoin ETFs, the trend had reversed, with overall inflows turning positive again.

Read Bitcoin’s [BTC] Price Prediction 2024-25

A rising amount of retail interest coupled with institutional confidence could help BTC rally further.

At the time of writing, BTC was trading at $62,784.09 and its price had grown by 2.17% in the last 24 hours.

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