Bitcoin climbs to 31,000 US dollars, short traders gamble themselves away
Short traders are underestimating Bitcoin’s strength as the bounce shows no signs of abating, pushing the price up to US$31,000.
Bitcoin (BTC) not only managed to crack the psychologically important US$30,000 mark on the first Saturday of 2021, but also managed to almost climb to US$31,000 today. This whopping push is a pleasing start to the New Year for crypto investors.
As data from Cointelegraph Markets, Cryptometer and TradingView shows, an interim high of US$30,960 was reached on 2 January after US$100m Profit Revolution worth of short positions were liquidated in the day’s buying.
Short traders gamble away
Bitcoin had already tried several times on New Year’s Day to clear the big 30,000 hurdle, which then worked with the help of high volatility on today’s Saturday.
Bitcoin hourly chart. Source: TradingView
The updraft that catapulted the market-leading cryptocurrency over this psychologically important barrier subsequently flushed Bitcoin almost as high as US$31,000.
While this development is welcome news for many Bitcoin investors, there are also traders who literally gambled by underestimating the current strength of the market-leading cryptocurrency.
„I’m shocked this is a gamble,“ as one Twitter bot monitoring trades on crypto trading platform BitMEX sarcastically wrote.
It’s an analysis that a human couldn’t have put more aptly, as short traders on BitMEX alone lost $10 million after Bitcoin pulverised the major hurdle against expectations.
So with the crypto market leader currently soaring, betting against it at key resistance levels can be costly.
Dogecoin leads the altcoins
The altcoins are coming to life in the evening after all. Dogecoin (DOGE) swings to the top of the day with a 42% gain, while Ether (ETH) climbs back above $750.
Cointelegraph Markets analyst Michaël van de Poppe, is convinced that the altcoins will start their own high flight this month. Accordingly, he sees today’s developments as a positive omen for the crypto market as a whole.
„The higher this wave goes for Bitcoin, the higher the next one will go. 2021 will be fierce,“ the expert said with optimism as the US$30,000 mark was blasted.
Meanwhile, the rest of the top 10 altcoins have made less significant price moves. XRP can at least recover with small steps from the price plunge after the indictment of operator Ripple.