BTC Hits 2-Month High As $100M In Short Covering
Bitcoin surged over $28,000 for the first time since August 17, adding $800 in a sudden spike. The move surpassed its resistance of $27,200, liquidating positions worth $47.4 million in the futures market, 90% of which were in short orders. This move suggests a potential reason behind the pump.
Bitcoin’s price surge coincided with short liquidations, suggesting a short squeeze in the futures market. This occurs when asset prices rise quickly due to existing short order holders buying at higher prices. The combined market cap of crypto tokens increased by 3.3%, reaching $1.16 trillion. Bitcoin’s price surges in October every year, except for bear markets in 2014 and 2018, according to CoinGlass data.
(With inputs from Shikha Singh)
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