The crypto space has been witnessing a roller coaster ride for the past few weeks, testing the extremes. The rise was highly speculated as one of the largest asset managers, Blackrock, had shared its plans to file for a Bitcoin ETF. No sooner than 575 ETFs were approved against 576, and the markets began to recover. Bitcoin price which was struggling around $25,300, quickly rose above $26,000 and is currently trading around $26,500.
Did the Bitcoin shorts get rekt or did the bulls jump into rescue?
Whenever the price undergoes a massive recovery of more than $1000, the probability of a short squeeze emerges. Massive short liquidations are recorded, which propel the price higher above the crucial resistance. However, in the present case, the price rise is not fueled by liquidations but rather by pure BTC purchases. The data from Криптоквант shows minimal short liquidations in the past few days.
The last time the BTC price soared due to short liquidation was on June 6, with a $31.85 million liquidation causing the price to rise from $25,351 to $27,230 in a day. Further, the price again dropped to form lows around $24,800 and consolidated for a while. However, the short liquidations in the past few days have been around $15 million. This coincided with a BTC price from the low to the high of $26,500. As the short liquidations are recorded less, it is speculated to be a pure BTC purchase.
Collectively, Bitcoin currently appears to have raised above the alarming condition and the expectation to drop below $24,000. However, the bullish conditions can be validated once the price soars above $27,800 and until then the fear of a bearish move may continue to haunt the rally.
Source: https://coinpedia.org/price-analysis/did-bitcoin-late-shorts-get-rekt-again-is-this-the-beginning-of-a-recovery-to-30000/