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Bitcoin ‘short squeeze’ sends BTC price to $35.9K as OI stays elevated

Bitcoin ‘short squeeze’ sends BTC price to $35.9K as OI stays elevated


Bitcoin (BTC) experienced the typical price fluctuations leading up to the Nov. 7 daily close, with a “short squeeze” pushing the market close to $36,000. The data from Cointelegraph Markets Pro and TradingView indicated that the highly elevated open interest (OI) on exchanges was driving the reaction of BTC/USD.

Previously, there were concerns about the more than $15 billion in OI leading to increased volatility, with the potential for a downward BTC price. However, Bitcoin made rapid gains, reaching just below $35,900 and causing shorts to feel the pressure.

Before the move, popular trader Skew and others predicted the event, with Skew suggesting that momentum would increase quickly if $34,800 was reached. On-chain monitoring resource Material Indicators also suggested that $36,000 would remain out of reach for the week.

Meanwhile, trader Daan Crypto Trades observed a shift in derivatives composition, noting that traders on Binance were positioning themselves bearishly compared to those on Bybit, but a “long squeeze” was uncertain.

The impact of the short squeeze on Binance was highlighted by financial commentator Tedtalksmacro, showing that short open interest disappeared.

At the time of writing on Nov. 8, BTC/USD was trading at $35,300, with OI still beyond $15 billion, according to data from on-chain monitoring resource CoinGlass.

It’s important to note that this article does not contain investment advice or recommendations, and readers should conduct their own research before making any investment or trading decisions.