Bitcoin (BTC) showed instant volatility on March 11 amid hopes that the Russian-Ukrainian conflict could find a diplomatic solution.
Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View
Hope is rising, but so are the Bitfinex shorts
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD rose briefly to $1,400 before reversing and consolidating below $40,000 on Friday.
The move follows fresh comments from Russian President Vladimir Putin, who, in a meeting with his Belarusian counterpart Alexander Lukashenko, said there were “positive shifts” in Ukraine’s dynamics.
“There are some positive developments, our negotiators tell me,” he said, quoted by Reuters and other sources.
Bitcoin, already known for “not liking” the escalation of armed conflicts, immediately bounced back in line with European and US stock markets. The German DAX jumped 2.6% on the news, while S&P 500 futures rose 1.1% ahead of the Wall Street open.
At the time of writing, BTC/USD volatility has persisted and the bulls have been trying to break the $40,000 resistance more convincingly.
Previously, however, warnings have come from those who have watched rapidly rising short positions on major exchange Bitfinex – a classic sign that a short-term drop must be imminent.
Explosive growth in #Bitcoin bitfinex shorts
I hate to say it, capitulation is coming pic.twitter.com/FTQGt41UBQ
— Cole Garner (@ColeGarnerXBT) March 11, 2022
At the time of writing, they were still rising as seen on both the daily and lower timeframes and at their highest level since July 2021.
Short BTC/USD on a 1-day candlestick chart (Bitfinex). Source: Trading View
According to the monitoring resource Coinglass, a push to local highs of $40,200 caused a moderate liquidation of short positions on derivatives platforms.
Cryptocurrency liquidation schedule. Source: Coinglass
Traders keep calm
Bitcoin is still below the upper limit of its established trading range, with the area north of $42,000 proving to be impossible to hold through 2022.
Related: Buying Big? Nearly 30K BTC Leaves Coinbase Pro in 3 Transactions
However, the latest price move has been a boon for some traders as the popular Anbessa Twitter account told followers that everything was going according to plan.
$BTS/USD Refresh ✅
bullish divergence is playing out ✔️
4th entry -> 4 bounces up by 3% pic.twitter.com/QqZnheFLyQ— AN₿ESSA (@Anbessa100) March 11, 2022
Fellow merchant Pierre meanwhile dedicated a rising wedge of support that bulls should ideally maintain going forward.