Crypto Short Squeeze Triggers Surge to $28K

• Bitcoin (BTC) has pared off its losses and is trading at a price above $28,800.
• The recent rally was fueled by Bitcoin ETF applications from BlackRock and Invesco.

It looks like the week-long downward correction of the largest cryptocurrency by market capitalization Bitcoin (BTC) has taken its full course and is now ready for a reversal. BTC skyrocketed to a price above $28,000 on Tuesday afternoon after trading flat at $26,800 a few hours before then, indicating the largest short squeeze this month. 

Markedly, the rally began after news that EDX Markets, the cryptocurrency exchange backed by Citadel, Fidelity, and Charles Schwab, has launched operations and raised capital. 

This is in addition to other major crypto news that was recently announced. Deutsche Bank announced that it has applied for a crypto custody license in Germany. BlackRock also applied to list spot BTC Exchange Traded Funds (ETF) last week.

This series of good news has played a vital part in lighting up the atmosphere which had previously gone stale with the news of simultaneous enforcement actions against top cryptocurrency exchanges Binance and Coinbase by the United States Securities and Exchange Commission (SEC).

Brent Xu, Chief Executive Officer (CEO) and Co-founder of Decentralized Finance (DeFi) bond market platform Umee attested that the BTC price rally is correlated to the news of these financial shotguns showing more interest in the crypto industry.  Xu added.

It’s clear that BlackRock, Fidelity and the others have client bases that want to invest in BTC and other crypto assets by way of ETFs and other more traditional investment vehicles.

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Bitcoin Eyes $30,000 Resistance Level

For trend observers, this rally has pushed Bitcoin beyond its 50-day simple moving average. Along the line, BTC lost some of its gains and dropped to around $27,900 but in the last 24 hours, the cryptocurrency has outperformed other digital currencies. Based on data from CoinGlass, investors have lost over $36.6 million to liquidation in the last 24 hours while waiting for prices to plummet. 

Bitcoin and some other crypto assets have begun trading again today on the green and so far, there has been a significant gain in their prices. At the time of this writing, BTC was trading at $28,803.44, a 7.49% increase in the last 24 hours. Also, Bitcoin’s share in the aggregate crypto market has gone up to 50% for the first time in two years. 

According to Strahinja Savic, the head of data and analytics at Toronto-based crypto platform FRNT Financial, BTC, unlike many other cryptocurrencies, has not been involved in all of the lawsuits coming from regulators in the U.S. 

Most of the tokens caught in the crosshair on SEC vs Binance and Coinbase are BNB (BNB), Binance USD stablecoin (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos Hub (ATOM), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS,) and Coti (COTI).

Many crypto enthusiasts believe that Bitcoin may likely continue leading the market and even hit the $30,000 resistance level in no distant time.

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