"Now it's back down again, but don't worry, maybe the price of BTC wants to pull back?"
Without realizing it, the king of cryptocurrency Bitcoin (BTC) managed to surprise investors yesterday when its price climbed up to $37,970 for the first time since May 2022 before falling back to $35,611.
This is because traders are currently very bullish on BTC, therefore long positions and futures saw a significant rise followed by the amount of open interest in the crypto exchange which also peaked at $7.2 billion.
Not only that, the increase in BTC prices may also be triggered when short sellers act out of positions in a rush, better known as a short squeeze, where $50 million was liquidated within four hours during early Asian trading hours.
It was also reported that more than $21 million of shorts were liquidated on futures exchanges BitMEX, OKX and Binance, so here it can be seen that the move was driven by the trading of markets based in Asia where the exchange enjoys a relatively large user base.
Liquidity refers to when the exchange forcibly closes a trader's leveraged position due to the loss of part or all of their initial margin, but it should be noted that it occurs when a trader cannot meet the margin requirements for a leveraged position.
In addition, the crypto community that is increasingly confident that the United States (US) regulator will approve spot BTC ETFs in the near future can also be one of the reasons why BTC prices can be in bullish momentum.
As of this writing, BTC price has surged by 2.13% to $36,638 in the last 24 hours with a market capitalization of $715 billion and is up 6.01% over the last week.
