30s Summary

Bitcoin’s price rose swiftly on Nov. 21, nearing a value of $100,000 due to a liquidity crunch. This surge is attributed to a rise in demand for the cryptocurrency. Trader Skew suggested that a dip in Bitcoin’s price at this point could be seen as a buying opportunity by some, while others have started to accept the possibility of Bitcoin’s value exceeding $100,000. The quick 38% gain in three weeks is faster than many had expected. However, some caution a potential drop in the market that could help confirm Bitcoin’s strength at these new high levels.

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Bitcoin (BTC) had a swift rise on Nov. 21 due to a liquidity crunch, nearly reaching a value of $100,000.

In simpler terms, this means there was an increase in demand for the digital currency. Factors such as a lack of supply, or a surge in market activity, typically cause this type of event. As a result, Bitcoin’s price was less than $3,000 away from a massive milestone.

Some people in the trade, including a popular trader called Skew, pointed out that if large sellers want to resist this upward trend, this is the point to do it – particularly by offering Bitcoin for more than $100,000. Skew argued that any major dip in price from this point will be considered a buying opportunity, and if not, the price will keep shooting up over $100,000.

Skew also mentioned that new Bitcoin (also called “ask liquidity”) started to appear on the exchange order books for prices above $100,000 – a sign that the market was beginning to accept the possibility of a six-figure Bitcoin value.

The $100,000 mark has been deemed significant for a while, and Bitcoin’s quick 38% gain in three weeks brought it closer to this goal much faster than many had anticipated. Some believe that if the price crosses this barrier, there will be a surge in demand as people will start buying Bitcoin out of fear of missing out on potential gains.

A report from CoinGlass explained that Bitcoin short sellers, or those betting the price will go down, lost just over $92 million within 24 hours.

However, some are also advising caution, warning that a drop in Bitcoin market to confirm its strength at these high levels could be beneficial before continuing its upward trend. A trading source referred to as Material Indicators suggested that the low to mid $90,000s could be a good place for this. They noted a lack of buying activity should selling pressure increase.

It’s important to note that investing in any market always involves some degree of risk, so always do your research.