The week-long uptrend in the price of bitcoin is continuing, and it has sent the currency beyond $20,000 for the first time since early November. Bulls must first disperse the obstinate selling congestion zone at $21,000 to reach their target price of $24,000. The Price of Bitcoin Is About to Enter A Bull Market
Analysts are now in favour of a sustained bullish breakthrough after the bitcoin price rejected expectations for more downward action below $13,000 and $9,000 over the past two weeks.
As major cryptocurrencies soared higher in one of the most remarkable rallies in about a year, traders who were betting against the cryptocurrency market have lost more than $450 million in the last 24 hours.
Data from CoinGlass shows that short traders lost $457 million over the previous day on significant centralised exchanges. With nearly $241 million, the cryptocurrency exchange OKX received the lion’s share of these liquidations, followed by Binance with $116 million.
An investor could consider taking a profit around the 200-day EMA – supply zone, according to Altcoin Sherpa, a well-known cryptocurrency analyst and trader with more than 188k Twitter followers.
“An expected retreat is indicated by how overextended the whole trend appears to be. Although I still don’t believe this to be the global macro bottom, let’s see, “He said.
The bulls are pushing for another rapid advance to $24,000 and then $30,000, so a daily close above this level would be critical for the price of bitcoin. More investors would be tempted to record gains if this weren’t done.
Along with short-term investors, long-term investors were also unprepared as over $108 million in long holdings were liquidated.
This increases the total value of holdings that have been liquidated over the last day to almost $727 million, a number not reached since November 8 when issues with the cryptocurrency exchange FTX surfaced.
According to statistics from CoinGlass, most liquidations occurred in the last 12 hours, when the value of liquidated assets reached $514 million.
Over the last day, liquidations of short and long positions in futures connected to Bitcoin totalled $23 million, while those of futures tied to Ethereum totalled over $16.8 million. The liquidations for the Solana, DogeCoin and Aptos-tracked futures totalled almost $3 million.
The biggest cryptocurrencies broke over significant resistance levels and continued their rallies, which is why there have been record-high liquidations.
The price of Ethereum recently climbed to over $1,600, while the price of Bitcoin briefly crossed the $21,000 level. Over the previous day, both currencies had increased by about 10%.
Meanwhile, the futures market for digital currencies has seen a sharp increase in activity. Buyers entered the market early on Saturday morning, buying over $4 billion worth of bitcoin futures, according to Crypto Quant’s Ki Young Jun.
A variety of variables may have influenced the current crypto rise. But the market was still gaining traction after new data from the U.S. Department of Labor released on Thursday suggested that inflation was slowing.