According to TradingView, the Bitcoin price on the Bitstamp crypto exchange hit an intraday high of $ 59,755 on Saturday (March 13) around 10:33 UTC, setting a new all-time high.
Rafael Schultze-Kraft, CTO at on-chain research startup Glassnode, said more than $ 100 million in short positions had been liquidated as a result of a liquidation short press::
USD 100 million + short liquidations within 10 minutes.
Don’t bet against 👏 #Bitcoin 👏
– Rafael Schultze-Kraft (@ n3ocortex) March 13, 2021
Here is the Binance Academy describe the anatomy of a short print:
“A short squeeze occurs when the price of an asset increases sharply because many short sellers are pushed out of their positions.
“Short sellers are betting that the price of an asset will go down. When the price rises instead, short positions begin to amass an unrealized loss. When the price rises, short sellers may be forced to close out their positions. This can be done via stop-loss triggers, liquidations (for margin and futures contracts). This can also be done simply because traders close their positions manually to avoid even greater losses.
“How do short sellers close their positions? You buy. For this reason, a short press leads to a strong price increase. When short sellers close their positions, a cascading effect of buy orders adds more fuel to the fire. Therefore, a short squeeze is typically accompanied by an equivalent increase in trading volume.“
Ki Young Ju, CEO of the South Korean blockchain analytics startup CryptoQuant, believes that today’s price increase for Bitcoin “is due to the stable purchasing power of Bitcoin”. The large negative gap between the Bitcoin price for Coinbase and Binance suggests that Binance has had tremendous buying pressure.
Since funding rates weren’t that high at the time of the spike, one analyst believes they were driven by spot buyers.
Crypto analyst Lark Davis suggested that it is not too late to buy bitcoin as it could easily reach 10x from here in the next few years.