Bitcoin (BTC), which was at $48,000 on Oct. 1, saw a classic “short squeeze”, where over $270,000,000 of crypto positions were liquidated in less than an hour.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Cointelegraph Markets Pro and TradingView data showed that BTC/USD hit $47,800 on Bitstamp and jumped $3,000 in just minutes.
This is a familiar scenario for traders. The upward volatility came after signs that the BTC price recovery was already underway on Thursday, especially as the dollar struggled.
539 #BTC Shorts were liquidated in under a minute, sending #Bitcoin up to 47k Squeeeeeeeeezed pic.twitter.com/Uf2CzvndcC
— Daniel Joe (@DanielJoe916) October 1, 2020 $270M liquidations per hour, say hi to uptober
— Lex Moskovski (@mskvsk) October 1, 2021
Volatility remained at the time of writing with BTC/USD above $47,000 — Augusts close.
Michael van de Poppe, a Cointelegraph contributor, tweeted “Goodbye bears” in one of the many bullish tweets sent by traders after the move.
Rekt Capital, a fellow analyst, offered a darker take.
He warned that “Bitcoin would retrace deeply enough to convince us that the Bull Market has ended.”
“And then itll resume its uptrend.”
September 19th was the last time Bitcoin reached $47,000.
BTC liquidations 1-hour chart. Source: Bybt
“Uptober” lives up its name
Major altcoins were just as optimistic, with some seeing gains exceeding 10% that were comparable to BTC/USD.
Related: Analyst nails Bitcoin Monthly Close 2 Months Running — His October Target is $63K
Bitcoin dominance was already increasing in the new month and stood at 43.3% as of the writing.