Magnifique short squeeze: Bitcoin soars 8% after hitting seven-week low
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Bitcoin has bounced off support yet again, and jumped by more than eight per cent in six hours after hitting a seven-week low early this morning.
BTC dipped to $53,350 at 5.45am AEDT, its lowest level since October 6, but by lunchtime it was was over $58,000 in a likely short squeeze.
The gains came even as the ASX and other Asian-Pacific sharemarkets sold off over fears about the new Omicron Covid variant, showing crypto’s value as an uncorrelated asset.
“So far so good, nearly textbook bounce,” tweeted Bitcoin analyst Will Clemente.
“To check our bullish bias though: Still need to reclaim $61k… and also need to see how legacy markets react tomorrow. Definitely not out of the woods yet.”
The pump would have annihilated traders who positioned on the “textbook head and shoulders” pattern in the weekend’s trading, analyst Dollar Cost Average remarked.
“Big market buy orders, no worries about getting a good price. The purpose was to drive up price.”
— NewLife.crypto (@new_life_crypto) November 28, 2021
Magnifique ce short squeeze 😍 #bitcoin
— YS (@YanisIsk) November 28, 2021
Overall the crypto market was at US$2.59 trillion, up 5.0 per cent from 24 hours ago.
Ethereum was changing hands for US$4,343, up 6.8 per cent.
About 90 of the top 100 coins were in the green.
Animoca Brands’ The Sandbox (SAND) was the biggest gainer in the top 100, up 20.7 per cent to US$7.45 ahead of the alpha launch of its virtual world at midnight tonight Sydney time (1pm UTC).
SAND hit an all-time high of $8.40 a few days ago, and has been on an absolute tear all month, rising about tenfold since Mark Zuckerberg announced on October 28 that Facebook was changing its corporate name to Meta.
SAND is now the No. 35 token, just ahead of virtual world competitor Decentraland (MANA) at No. 36.
Ethereum Name Service was up 15 per cent to $79, making it the No. 91 coin.
On the flip side, The Graph was the biggest loser in the top 100, falling 4.1 per cent to 98.6c.