The BTC markets rallied today, with a minor short squeeze quickly driving the price up by more than 5% in less than half an hour. The move, however, may have been short-lived, with both volume and price action failing to have gathered further momentum following the sudden spike.
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Minor Squeeze Drives Weak BTC Rally
When looking at the 1-minute chart, one can see that more nearly 1,500 BTC were traded in just sixty seconds at 01:00 on the 22nd of August – driving the price up by more than 4% from roughly $6,465 in less than one minute.
By 01:20, the markets had gained as much as 6.7% in twenty minutes to test resistance at $6,900. At 02:02 the BTC markets unsuccessfully retested the $6,900 area, before dropping 2.5% in the following five minutes.
From then on, BTC markets oscillated within a 1.5 to 2 percent channel for approximately twelve hours, bouncing between approximately $6,640 and $6,750 until 13:35, at which point the markets shed a further 3.5% to complete a full retrace back down to test support at $6,400.
Looking at the number of shorts on Bitfinex, a nearly 11% drop to roughly 35,500 occurred today, following yesterday’s test of the all-time highs of 40,000. Despite the retracement in selling pressure witnessed today, it was far less violent than April’s short squeeze which saw the number of shorts drop by 41% in a single day after establishing a then-record high of roughly 40,000.
BCH Gains 9% in 20 Minutes
BCH also rallied at the same time today, gaining nearly 9% from almost $530 at 01:00 to test resistance at $575 less than twenty minutes
