Bitcoin pulverized shorters as an explosion to $30,950 liquidated a large number of risky positions. Bitcoin passing $30,000 and hitting highs just under $31,000 has caused major pain for the traders who bet on a bearish pullback.
Amid the highly volatile conditions, bitcoin tried to crack $30,000 several times on January 1 and overnight before it finally clinched the psychologically significant level on Saturday.
This steep move was accompanied by a bullish charge that soon took the biggest crypto even higher. At the moment, BTC is trying to break above the $31,000 level. While many participating in the bitcoin market celebrated, some were left worse than just minutes previously.
Liquidated short on XBTUSD: Buy 10,000,000 @ 30864 🏅🏆💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯 ~ I’m shocked, shocked to find that gambling is going on in here!
— REKT (@BXRekt) January 2, 2021
A bot that was tracking the liquidated trades on BitMEX derivatives giant highlighted:
“I’m shocked, shocked to find that gambling is going on in here!”
Available figures suggest that the shorters on the BitMEX platform alone lost around $10 million which is a sad reminder of the dangers involved in second-guessing BTC at critical levels.
Dogecoin Leads Altcoin Brigade
In other markets, altcoins started to see changes. Dogecoin (DOGE), an interesting mover, gained 42% on the day, while the leader Ether (ETH) rose back above $750. Some analysts and commentators believe that this month will kick start a broader alt season, which is quite bullish. One of them tweeted as $30,000 hit:
“The higher this impulse wave goes for #Bitcoin, the higher the next one will be as well. 2021 is going to be fire.”