Bitcoin (CRYPTO: BTC/USD) experienced a rapid surge and surpassed key psychological levels at $36,000 and $37,000. 

A short squeeze led to a significant wick, driving the cryptocurrency to reach an intra-day peak of $37,972. 

This upward movement favored long positions, liquidating over $1.56 million in short positions.

A short squeeze leads to a high-pace price rise in any asset. It typically begins when the price jumps higher unexpectedly and short sellers exit their positions, leading to a buying flywheel. Liquidation implies when an exchange purposely closes a trader’s leveraged position caused by to partial or total loss of the trader’s initial margin. The trader is unable to meet the margin requirements for a leveraged position.

The news comes on the heels of Benzinga’s Future Of Digital Assets Event in New York scheduled on Nov.14. Attend and learn more about Bitcoin prices breaching all new thresholds. The gathering is seen as pivotal for the digital assets community. The event will spotlight the latest trends, innovations, and challenges in the digital asset realm.

However, the jubilation was short-lived as the markets took a nosedive, causing the leading cryptocurrency to plummet to the 35,700 level. 

The subsequent long squeeze led to the liquidation of up to $17 million in long positions, erasing approximately $1 billion in open interest within hours.

Bitcoin’s Market cap gained almost 3.1%, and trading volume in over 24 hours increased around 120%.

Short positions faced a squeeze, while long positions found themselves trapped, eliminating approximately $1 billion in open interest.

Price Action: BTC was trading up 2.28% at 36,437.83 at the time of publication.