Bitcoin (BTC), which saw immediate volatility on March 11, amid hopes that the Russia-Ukraine war could find a diplomatic resolution, was volatile.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Hope rises — but so do Bitfinex shorts
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD briefly jumped $1,400, before consolidating below $40,000 on Friday.
This move came after Russian President Vladimir Putin made new comments during a meeting with his Belarusian counterpart Aleksandr Lukashenko that there had been “positive changes” in Ukraine’s dynamic.
He said that there are positive shifts and that negotiators on my side have told me so, as quoted by Reuters among others.
Bitcoin, which is already well-known for its inability to “like” violent escalations, rebounded immediately in line with the European and U.S. stock market. The news saw the German DAX rebound 2.6%, while the S&P 500 futures rose 1.1% prior to the Wall Street open.
Volatility remained at BTC/USD as of the writing. Bulls are trying to break $40,000 resistance more convincingly.
However, warnings were previously issued by Bitfinex watchers who noticed rapidly growing shorts — a sign that a short-term downside was likely.
Explosive growth in #Bitcoin bitfinex shorts hate to say it, capitulation incoming pic.twitter.com/FTQGt41UBQ
Cole Garner (@ColeGarnerXBT), March 11, 2022
They were visible at both lower and daily time frames, and at their highest level since July 2021.
BTC/USD Shorts 1-day Candle Chart (Bitfinex). Source: TradingView
Data from Coinglass, a monitoring resource, showed that the push to $40,000.00 local highs caused moderate liquidation of short positions using derivatives platforms.
Chart of crypto liquidations. Source: Coinglass
Bitcoin was still below the upper limit of its trading range. The area north of $42,000 proved impossible to hold for very long in 2022.
Similar: How big is your purchase? Coinbase Pro leaves Coinbase Pro with nearly 30K BTC in just 3 transactions
However, traders were able to benefit from the latest price action, as Anbessa, a popular Twitter account, told followers that everything was going according plan.
$BTC/USD Update bullish divergence playing out 4th entry -> 4 bounce up 3% pic.twitter.com/QqZnheFLyQ
— ANBTCESSA (@Anbessa100) March 11, 2022
Pierre, a fellow trader, meanwhile pointed out a rising support triangle that bulls should ideal keep going forward.
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