$1 Billion Worth of Bitcoin Short Positions Liquidated In 24 Hours
The recent Bitcoin rally has led to various consequences, and ByBt, a crypto analytics firm, has confirmed that this is true from their recent survey. The firm discovered that at least $1bn worth of Bitcoin positions had been liquidated in the last 24 hours.
Strong Bullish Signs?
Earlier today, the world’s leading crypto exchange firm, Binance, reported that Bitcoin price was almost at $40K before declining by a few hundred dollars. It would seem that Bitcoin is poised for a new bullish run in what is termed a short squeeze.
As is expected, other aspects of the cryptocurrency market followed suit, with Bitcoin futures rising slightly to about $48,230. As of this writing, Bitcoin price has declined further and now trades around the $38,500 mark.
The sentiment of the bears on the crypto market has been tremendous that some retail traders started shorting their positions. Hence, a sharp surge was the only logical way the market could achieve liquidity even though it was a painful move. Thus, the short squeeze isn’t a surprise, with the possibility of the Bitcoin price rising to about $40K.
Continuing Short Squeeze
After plunging from the resistance levels of about $32.7K, Bitcoin underwent a false break at less than $29K, after which it experienced a short bounce. Then, it flipped its $31.5K resistance to support before surging to almost $35K after some period of consolidation. It was at this level that a few short positions were liquidated.
The short squeeze continued and hastened a solid bullish impulse. Hence, it easily surpassed the $37K resistance level and almost reached the $40K levels. Right now, the $40K levels are its resistance levels.
Bitcoin May Reach $45K Soon
Bloomberg crypto analysts have revealed that the bulls are now more active after Bitcoin showed a fast recovery from around the $29K range to over the $31K range in less than seven days. The bulls ensured that Bitcoin continued its rise to the $37K range and later the almost $40K range as seen on BitStamp, reaching a new 6-week high.
Now, Bloomberg crypto analysts predict that the BTC price might soon reach $45K because its current move is a confirmation of a standard double-bottom pattern. But they also indicated that the leading crypto might encounter some resistance around the $42K levels.
Bloomberg Analysts Analysis. Source: Bloomberg
One major cause of Bitcoin’s bullish run yesterday till almost $40K was the revelation from an anonymous source that Amazon will start accepting Bitcoin payments before the end of this year. Then, when the Bitcoin payment experiment is successful, it would also allow payments in other cryptocurrencies such as Bitcoin Cash, ADA, and Ethereum.
Meanwhile, Wave Financial president and partner, Matteo Dante Perruccio, has opined that Bitcoin has all the attributes that hedge fund managers look for in an investment they consider as an asset. One of such attributes is its deflationary trait, in which the number of issued coins is limited, and its supply is halved every four years.
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