According to data from TradingView, on the Binance cryptocurrency exchange, around 10:33 UTC on Saturday (March 13), the price of Bitcoin reached the long-awaited new all-time high of $ 60,000.
Rafael Schultze-Kraft, chief technology officer for on-chain market intelligence startup Glassnode, said that more than $ 100 million in short positions had been liquidated as a result of a short squeeze:
$ 100m + short liquidations within 10 minutes.
Don’t 👏 bet 👏 against 👏 #Bitcoin 👏
Chart: https://t.co/5enuFiIxQG pic.twitter.com/lGOAMtnGAb
– Rafael Schultze-Kraft (@ n3ocortex) March 13, 2021
Here is the Binance academy describing the anatomy of a short squeeze:
“A short squeeze occurs when the price of an asset rises sharply due to many short sellers being forced out of their positions.
Short sellers are betting that the price of an asset will go down. If, instead, the price rises, the short positions begin to accumulate an unrealized loss. As the price rises, short sellers may be forced to close their positions. This can happen through stop-loss triggers, settlements (for futures and margin contracts). It can also happen simply because traders manually close their positions to avoid even bigger losses.
So how do short sellers close their positions? They buy. This is the reason why a small contraction results in a strong price increase. As short sellers close their positions, a cascading effect of buy orders adds fuel to the fire. As such, a short contraction is usually accompanied by an equivalent spike in trading volume. "
Ki Young Ju, CEO of CryptoQuant, a South Korean blockchain analytics company, believes that today's rise in the price of Bitcoin "came from the purchasing power of stablecoins." The large negative gap between the price of Bitcoin on Coinbase and on Binance suggests that there was a lot of buying pressure from Binance.
Significant negative price gap between Coinbase and Binance. It seems this surge came from stablecoin buying power. https://t.co/gC1Jqrbn9b pic.twitter.com/txpVdMtMiz
– Ki Young Ju 주기영 (@ki_young_ju) March 13, 2021
Since financing rates weren't that high at the time of the increase, one analyst believes it was driven by spot buyers.
Very low funding for these price levels.
Many people have deleveraged * before * the price uptick.
It is safe to say that the current #Bitcoin surge is driven by spot buyers.
– Lex Moskovski (@mskvsk) March 13, 2021
Cryptanalyst Lark Davis suggested that it was not too late to buy Bitcoin yet, as you could easily 10 times from here in the next few years:
#bitcoin at $ 60,000 is still cheap, will be $ 600,000 in a few years!
– Lark Davis (@TheCryptoLark) March 13, 2021