The cryptocurrency market has seen a notable resurgence in the past hour, with prices of major cryptocurrencies, including Bitcoin, flipping to the positive side.
This hourly price movement triggered a violent liquidation event in the Bitcoin derivatives market, as Coinglass data shows a significant bias against short positions.
During the last hourly liquidation session, a total of $8.03 million Bitcoin positions were extinguished, and a huge short position of $8 million was recorded against a long position of only $21,930.
Bitcoin short sales under pressure
This massive liquidation imbalance occurred when the market witnessed a sudden change in sentiment, with short sellers suffering the bulk of the liquidations, recording a huge liquidation imbalance of 36,389% in just one hour.
Early today, Bitcoin price slowed down from the rapid recovery seen the previous day and started the day in red territory. Nevertheless, Bitcoin subsequently regained momentum in the later hours of the day, with prices resuming their rise and bearish traders betting on a severe pressure rise.
Bitcoin gets back on track and regains $100,000
The unwinding of large short positions is not surprising, as the market is finally regaining momentum amid renewed interest and confidence, but the long-term volatility seen so far has left traders looking heavily on the downside.
However, Bitcoin ETFs are also seeing impressive daily inflows, and the market is returning to a positive move for Bitcoin due to the surge in demand from institutional investors.
Nevertheless, the short-term window shows how pressure has suddenly increased, sparking curiosity about the next price move. Bitcoin’s intraday movement showed the price falling from a low of $86,171 to regaining $90,000, causing an unexpected change.
Nevertheless, it is trading at $89,760 at the time of writing, marking a significant 2.61% increase from the previous day, according to CoinMarketCap data.
With these unexpected price movements and increased demand for the leading cryptocurrency, Bitcoin appears to be poised for a big rally in December and could be on the verge of regaining the key support level of $100,000.
