Bitcoin (BTC) consolidated near $31,000 on July 14 after a classic short squeeze triggered new yearly highs.
BTC/USD 1-day chart. Source: TradingView
BTC Liquidates $50M in Short Selling in New Squeeze
Data from Cointelegraph Markets Pro and TradingView showed BTC price action returning to cement support after rapid gains the previous day.
Bitcoin, which had already been hoping for an uptrend, immediately responded to news that a US judge had backed the idea that altcoin XRP (XRP) was not a security.
This was seen by markets as a blow to the Securities and Exchange Commission (SEC), which has been trying to en masse label altcoins as securities for the past few months.
XRP/USD immediately surged over 100% and almost touched the $1 mark before bouncing back near $0.80 at the time of writing. The last time such levels were part of the chart was in April 2022.
XRP/USD 1 week chart. Source: TradingView
Bitcoin, while significantly weaker, managed to liquidate $50 million worth of short positions, according to data from monitoring resource CoinGlass.
BTC/USD liquidation chart (screenshot). Source: CoinGlass
While Cointelegraph reported that the bears could still possibly gain the upper hand surrounding the weekly option expiration, traders were cautiously optimistic on the day.
“Bitcoin has failed to break out overnight and may fall back into the range here,” popular trader Jelle wrote in his latest social media update.
“I’ll wait and see how this 4 hour candle plays out but the bulls still have work to do. A little pressure and we can have a lot of fun this weekend.”
Fellow crypto trader Tony expressed frustration at the lack of a clear breakout of Bitcoin’s long-established trading range.
“I reject the top of the range so we have no entry into bitcoin yet. We’re waiting for a solid reversal before jumping into it,” he told his Twitter followers, adding that he “would be disappointed if BTC didn’t flip.”
Annotated BTC/USD chart. Source: Crypto Tony/Twitter
Altcoins are now facing a “mega run”
XRP’s comeback, meanwhile, set the backdrop for a sudden drop in Bitcoin’s market cap dominance.
Bitcoin Market Cap Dominance chart. Source: TradingView
Related: Will Bitcoin Catch Up? BTC price was at $40,000 when the dollar was so weak before
The largest cryptocurrency previously accounted for nearly 52% of total value, falling below 50% to near-month-lows overnight.
Traders had already hoped that Bitcoin would ease its increasing dominance, allowing altcoin markets to make gains of their own as part of a broader crypto bull market.
“Good things come to those who wait,” trader Mustache summarized on the day, predicting that the altcoin boom would continue.
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