Bitcoin climbs to a monthly high of around $ 11,700, causing a $ 60 million liquidation
Bitcoin made another leap on Tuesday night, setting a new monthly high of about $ 11,700. The last time at these levels, the cryptocurrency was traded in early September. Bitcoin is experiencing gains for the sixth day in a row, which is clearly visible on the charts after a period of consolidation. In total, during this time, the rate has risen by more than 10%.
The last jump was short-lived, and the cryptocurrency quickly retraced below $ 11,500.At the same time, Bitcoin remains above the 10- and 50-day moving averages, painting a bullish picture from a technical perspective.
The move did not pass unnoticed among the derivatives market, where over $ 60 million worth of bitcoin positions were liquidated over the past 12 hours. According to Bybt, in this case, holders of both short and late long positions were equally affected..
Also, data from Bybt indicates that funding rates for Bitcoin futures are starting to tilt in the positive direction for the first time in several weeks. This suggests that traders have become bolder to open long positions. So far, too, there is no need to talk about overheating of the market, since the values did not deviate too much from near-zero marks.
“Positive funding rates in the bitcoin futures market and recent acquisitions of large corporations such as Square have contributed to the growth of bullish sentiment in the short term, along with similar dynamics in traditional markets towards the end of the year,” said Jason Lau, COO of OKCoin..
Analyst firm Santiment noted on October 11 that the popularity of the word “short” in cryptocurrency-related channels reached a two-month high, while traders expected a local high of around $ 11,440 to form. They were victims of the latest market movement, overestimating the allowable leverage. “Comparing references to longs and shorts has historically been an excellent method of assessing market bias,” Santiment writes..