Shorts Obliterated as Bitcoin Surges Through $30K, Here is the Next Key BTC Price Target to Watch
The latest Bitcoin (BTC) price pump, which has seen the world’s largest cryptocurrency rally into the mid-$30,000s per token, has obliterated millions worth of short positions.
Indeed, in the last two days, $107 million worth of Bitcoin futures short positions have been liquidated across major cryptocurrency exchanges, according to crypto derivatives analytics website CoinGlass.
Around $60 million in short position have been liquidated on Tuesday alone, the highest daily tally since the 16th of March.
A separate chart presented by CoinGlass shows that bulls are gaining the upper hand when it comes to demand for Bitcoin futures leverage.
The Bitcoin futures leverage funding rate recently rose to 0.03% on decentralized cryptocurrency derivatives exchange dYdX, its highest level since the end of March.
A positive funding rate means that traders opening leveraged long positions are paying funding to those opening leveraged short positions, indicative of a higher degree of demand for the latter position rather than the former.
Bitcoin options markets also point to a bullish lean.
According to data presented by The Block, the 25% delta skew of Bitcoin options expiring in 7, 30, 60, 90 and 180 days are all above zero and not far below their highest levels for the year.
A skew of above zero suggests that investors are paying a premium for bullish call options versus their mirror opposite call option counterparts.
The latest Bitcoin price pump appears to have been catalyzed by short-term technical developments, including the recent breakout from a multi-week pennant formation.
Other technical observations such as 1) the fact that BTC had continually found support at its 21DMA in recent days, 2) all the major moving averages are moving
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