Around $427 million in short positions got wiped over 48 hours this week. That is not a small number. The move that caused it started quietly.

$BTC dropped to $70,486 on April 9. By April 10 it had pushed to $73,440. That $3,000 range was enough to catch a large crowd on the wrong side.

What stood out to me was the short dominance in liquidations. In one tracked window, shorts made up over 80% of all positions that got flushed. That tells you where the crowd was leaning going into this move.

Bitcoin open interest has been climbing the whole time. It went from $48 billion at the start of April to $51.45 billion after the move, and is now sitting near $54.62 billion. More capital is entering the derivatives market even after the shake.

When OI keeps rising after a liquidation event, the market is not cooling down. New bets are being placed almost immediately. That pattern usually means the next move has fuel behind it.

Ceasefire news was the trigger this time. Macro events hitting crypto this directly used to be rare. Now it happens regularly. That shift in correlation is something worth watching.

Price held above $72,600 on April 11. That level is worth keeping an eye on going forward.

#CryptoTrading #Bitcoin #GateSquareAprilPostingChallenge