Bitcoin (BTC) saw instant volatility on March 11 amid the hope that the Russia–Ukraine conflict could find a diplomatic solution.
Hope rises — but so do Bitfinex shorts
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD briefly surging $1,400 before reversing to consolidate below $40,000 on March 11.
Bitcoin, which is already known for not “liking” escalations in armed conflicts, immediately rebounded in line with European and United States stock markets. Germany’s DAX bounced 2.6% on the news, while S&P 500 futures were up 1.1% before the Wall Street open.
At the time of writing, volatility remained in BTC/USD, with bulls attempting to crack $40,000 resistance more convincingly.
Previously, however, warnings had come from those watching rapidly mounting shorts on major exchange Bitfinex — a classic sign that short-timeframe downside could be imminent.
Explosive growth in #Bitcoin bitfinex shorts
hate to say it, capitulation incoming pic.twitter.com/FTQGt41UBQ
— Cole Garner (@ColeGarnerXBT) March 11, 2022
These were still climbing at the time of writing, visible on both daily and lower timeframes and at their highest levels since July 2021.
The push to $40,200 local highs caused a moderate liquidation of short positions on derivatives platforms, data from monitoring resource Coinglass shows.
Traders remain cool
Bitcoin still remained short of the upper end of its established trading range, with the area north of $42,000 proving impossible to hold for long throughout 2022.
Related: Buying big? Nearly 30K BTC leaves Coinbase Pro in 3 transactions
The latest price action was a boon for some traders, however, with popular Twitter account Anbessa telling followers that all was going according to plan.
$BTC/USD Update ✅
bullish divergence playing out ✔️
4th entry -> 4 bounce up 3% pic.twitter.com/QqZnheFLyQ
— AN₿ESSA (@Anbessa100) March 11, 2022
Fellow trader Pierre, meanwhile, highlighted a rising support wedge that bulls should ideally preserve going forward.