Bitcoin Surpassed $72,000 Despite $102 Million Shorts
10 Apr, 2024 ● Vijesti o kovanicama
In the last 24 hours, leveraged short positions exceeding $102 million were liquidated as Bitcoin's price hovered above $70,400.
The question arises: does this signify a definitive breakout from BTC's weekly price range?
Bitcoin's value dipped slightly by 0.55% to just above $70,413, after reaching a weekly zenith of $72,668 on April 8, as per CoinMarketCap figures.
In the wake of Bitcoin achieving its weekly high, the crypto market saw the liquidation of over $102 million in leveraged short positions within a day, contributing to a total liquidation amount of $186.8 million, data from Coinglass reveals.
Specifically, Bitcoin liquidations comprised $61.6 million, with shorts amounting to over $33.9 million and leveraged longs to $27.7 million.
A significant liquidation event involved an order worth $4.49 million in Bitcoin on Binance, the leading global exchange.
Yet, the $33 million in Bitcoin short position liquidations was lesser compared to the $38 million short liquidations observed on April 2.
Furthermore, a rapid 5% decrease in BTC value on April 2 triggered $165 million in leverage liquidations within a span of under two hours.
Should BTC's price surge to $73,000, it would result in over $507 million in aggregated short leverage liquidations on Binance. This figure could escalate to $666 million if the price reaches $73,500.
Investors are advised to monitor the $73,000 mark closely — coinciding with the current peak — which now serves as a crucial resistance point and a potential trigger for short liquidations in BTC's price.
Post-liquidation, the funding rate for Bitcoin futures underwent a substantial adjustment, dropping to 0.0163% on April 9, markedly lower than the day before and significantly beneath the three-week peak of 0.0714% seen on April 1.
Bitcoin's price has effectively retested the former peak of $69,000, exiting its weekly range, a move deemed essential for affirming the likelihood of continued bullish trends, as noted in an April 7 X update by renowned crypto analyst Rekt Capital.
The analyst further noted:
“Bitcoin Daily Closed above the ~$69,000 level yesterday. And today Bitcoin is enjoying good upside.”
The recent surge in Bitcoin's price is largely driven by capital inflows from spot Bitcoin ETFs and the anticipation of the forthcoming Bitcoin halving, states Matteo Greco, a research analyst at Fineqia.
Greco anticipates a prolonged Bitcoin rally post-halving, potentially extending into the second quarter of 2025. He shared with Cointelegraph:
“Historically, BTC halving events have marked significant points followed by 9–18 months of uptrend, culminating in cycle peaks. [...] If historical patterns repeat, we may witness an uptrend for the remaining nine months of 2024, leading to a cycle peak expected between Q4 2024 and Q2 2025.”
Sources:
https://cointelegraph.com/news/bitcoin-126m-shorts-liquidated-surpassed-72k
https://coinmarketcap.com/currencies/bitcoin/
