Cryptocurrency Bitcoin (BTC) has finally seen some positive price movement after staying around $60,000 for a while. This gives bulls hope. Because of this surge, the market has changed dramatically, and many short contracts have been closed in the last 24 hours.
The recent rise in Bitcoin’s price has caused a “short squeeze.” In this situation, short sellers are either pushed to buy back BTC to close their short positions or face margin calls from exchanges to keep their positions open.
Short sellers who are trying to get out of their positions have pushed the price even higher, which has brought in new buyers who want to ride the upswing. This loop can cause major price jumps for Bitcoin, which often go beyond what people expected at first.
Bitcoin Market Remains Volatile
In this situation, short sellers can lose a lot of currency, but the market can also become very unstable, and there may be corrections as investors take their gains. As much as a short squeeze is good for bulls, it is also very dangerous for everyone because the market could change its mind and wipe out traders as prices move quickly.
Even though these risks exist, Bitcoin traders on Binance are still very positive. Reporters recently looked at Coinglass’s data and found that 75% of all open positions on the site in the last 24 hours were long bets, which shows a bullish bias.
The BTC/USDT perpetual contracts, which are the most actively traded cryptocurrency pair on Binance, show this opinion very clearly. Many retail users on Binance think Bitcoin has a lot of room to grow. They don’t care about the short-term price drops and expect the price to go up even more.
In addition to this good mood, Wall Street is also becoming more optimistic about Bitcoin (BTC). After a few days of net outflows into Bitcoin ETFs, the trend has changed and there are now net inflows again. The growing interest from regular people and the trust of financial institutions can help BTC go up even more.
After 24 hours of growth, BTC was worth $62,784.09 at the time of this writing. Bitcoin’s rise may continue, supported by both individual investors and large financial institutions, as shown by the upward trend.
