Bitcoin (BTC)'s bounce above $27,000 amid fears of FTX creditor liquidation might shake out altcoin bears, leading to a sharp rally in recently shorted tokens like solana (SOL).
The chart of the day is brought to you by crypto dot com. The world's fastest growing crypto app. All right, let's take a look at the chart of the day. As Bitcoin moves higher. The recently shorted alt coins like Solana Soul may see leverage liquidations and exaggerated price rallies since last Monday's brief move below crucial support at $25,000. Bitcoin has risen over 5% trading around $27,000 according to coin desk data, alt coins like Seoul are tracking Bitcoin high as they usually do. The recovery puts al coin bears who took leveraged bearish bets on Seoul and other tokens on fears of potential F TX creditor selling at risk of liquidation, potential forced liquidation of shorts will likely bring additional bullish pressures for Seoul's price leading to a short squeeze led rally since last Monday, Seoul's funding rates and perpetual futures have been consistently negative. Meanwhile, open interest has increased by over 16% to a one month high of $338 million according to coin glass. The combination of rising open interest and negative funding rates suggests traders have recently raised bar bets in Seoul that's a wrap for today's chart of the day. I'm Jen Senai. We'll see you next time to unpack more of the data behind top news stories.