Bitcoin plays shorters for fools as a surge to $30,950 liquidates a huge number of risky positions.
Bitcoin (BTC) passing $30,000 and hitting highs of near $31,000 has caused huge pain for traders betting on a bearish pullback.
BTC shorters feel the burn… again
Amid highly volatile conditions, Bitcoin attempted to crack $30,000 several times on New Year’s Day and overnight before finally clinching the psychologically significant level on Saturday.
The move was accompanied by a bullish charge which soon took the largest cryptocurrency even higher, with press-time levels attempting to crack $31,000.
While many celebrated, however, some were left far worse off than just minutes previously.
“I’m shocked, shocked to find that gambling is going on in here!” a telling tweet from a bot tracking liquidated trades on derivatives giant BitMEX summarized.
Figures suggest that shorters on BitMEX alone lost $10 million, a grim reminder of the dangers involved in second guessing Bitcoin at crucial levels.
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“The higher this impulse wave goes for #Bitcoin , the higher the next one will be as well. 2021 is going to be fire,” he tweeted as $30,000 hit.