Bitcoin (BTC) consolidated near $31,000 on July 14 after a classic short squeeze sparked new yearly highs.
BTC liquidates $50 million shorts in new squeeze
Data from Cointelegraph Markets Pro and TradingView showed BTC price movements returning to cement support after rapid gains the day prior.
Already tipped for a trip higher, Bitcoin reacted instantly to news that a United States judge had supported the idea that altcoin XRP (XRP) was not a security.
This was taken by markets as a blow to regulator the Securities and Exchange Commission (SEC), which in recent months had sought to label altcoins as securities en masse.
XRP/USD immediately spiked by over 100%, almost touching the $1 mark before returning to trade near $0.80 at the time of writing. The last time that such levels formed part of the chart was in April 2022.
Bitcoin, while considerably more muted, still managed to liquidate $50 million of shorts, according to data from monitoring resource CoinGlass.
While Cointelegraph reported that bears may still be able to get the upper hand around the weekly options expiry, on the day, traders were cautiously optimistic.
$BTC Aggregate CVDs & DeltaConfluence with market data ~ aggressive short squeeze & covering
Strong spot bid as well, want to see LTF dips bought by spot pic.twitter.com/XrwJpM6XOV
— Skew Δ (@52kskew) July 14, 2023
“Bitcoin failed to breakout overnight and could be falling back into the range here,” popular trader Jelle wrote in his latest social media update.
“Waiting to see how this 4h candle turns out, but bulls have some work to do. A bit of a push, and we can have a lot of fun this weekend.”
Fellow trader Crypto Tony voiced frustration at the lack of a clear breakout from Bitcoin’s long-established trading range.
“Rejecting from the range high so no entry for us to just yet on Bitcoin .. Waiting for a solid flip before we get into this,” he told Twitter followers, adding that he “would be disappointed if BTC doesn’t flip.”
Altcoins now due “mega-run”
Meanwhile, XRP staging a comeback formed the background to a snap drop in Bitcoin market cap dominance.
Related: Will Bitcoin catch up? BTC price was $40K when the dollar was previously this weak
The largest cryptocurrency previously constituted almost 52% of the total, dropping below 50% overnight to near one-month lows.
That did not take long.
Let’s see how $ALTS do once everything settles down a bit. https://t.co/ABBGid4MWL pic.twitter.com/VhRUHqgL9O
— Daan Crypto Trades (@DaanCrypto) July 13, 2023
Traders had already hoped that Bitcoin would cool its increasing dominance presence to allow altcoin markets to make gains of their own as part of a broader crypto bull market.
“Good things come to those who wait,” trader Moustache summarized on the day, predicting that the altcoin boom would still go ahead.
Altcoins are preparing for a mega-run imo.
I’ve been sharing this chart for a few months now and everything is going according to plan.
It’s just a waiting game.
Good things come to those who wait. https://t.co/OM2dKtbENW pic.twitter.com/DkasZSkE3t
— ⓗ (@el_crypto_prof) July 14, 2023
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