Short squeeze and ETF capital inflows drive up Bitcoin prices

Driven by new buying interest, Bitcoin ( BTC ) has rebounded from around $75,600 and once again surpassed the psychologically significant $80,000 mark. However, Shiba Inu Coin ( SHIB ) has not followed this upward trend and remains under significant selling pressure.

As of November 5th, BTC was quoted at $80,300, with a 24-hour increase of over 3%. Ethereum (Ether) performed even better, rising by about 5% to around $2,421. Therefore, this weakness is more likely to be a problem inherent to SHIB itself, rather than a general decline in the entire altcoin market.

Short squeeze and ETF capital inflows drive up Bitcoin prices

This round of gains seems to be a short squeeze. According to CoinGlass data, approximately $378 million in short positions were liquidated within 1 hour, with the total liquidation amount reaching around $747 million.

Spot Bitcoin ETF has also stopped the previous outflow of funds. According to Farside data, after a total net outflow of approximately $1.16 billion on October 30th, November 2nd, and November 3rd, there was a net inflow of $74.6 million on November 4th. However, on that same day, BlackRock's IBIT still experienced an outflow of $201.2 million.

However, short covering alone does not prove the emergence of new real demand. Analyst CryptoQuant believes that this round of adjustment may not have yet ended, and pointed out that the 30-day average value of the Bitcoin Cycle Extreme Value Index (Bitcoin Cycle Extremes Index) is currently at 15.8%.

What does Bitcoin need next?

From the daily chart perspective, buyers absorbed selling pressure in the support area between $76,000 and $77,000, which is near the 200-day moving average. Subsequently, BTC once again rose above the short-term moving average. The Relative Strength Index ( RSI ) is currently around 51, which represents an improvement from previous weaker readings, indicating that momentum is being restored. However, a bullish reversal has not yet been confirmed.

Mainstream coins rise in value, while SHIB lags behind.

XRP, Solana, and BNB all saw increases of around 2% to 4% within the same 24-hour period, but Shiba Inu Coin did not experience a significant rebound. The current trading price of SHIB is close to $0.00000475, which is significantly lower than its peak of around $0.00000620 in September.

The token has also broken below the upward support trend line, rendering the previously positive technical structure invalid; at the same time, its price remains below the main moving averages, which are increasingly acting as resistance rather than support. The recent resistance zone is between $0.00000510 and $0.00000530, with stronger resistance around $0.00000550.

Although RSI is approaching the oversold area, there is still a lack of sufficient evidence to indicate that the market has clearly begun to accumulate buying power.