Bitcoin’s surge past $72K liquidates over $102M in shorts, signaling bullish momentum and anticipation for the halving even
Bitcoin’s recent surge past the $72,000 mark has set the cryptocurrency market ablaze, with traders eyeing the next resistance level at $73,000, close to its all-time high. Additionally, this upward movement has been a tough hit for short sellers, resulting in the liquidation of over $102 million in leveraged short positions in just 24 hours. Furthermore, Bitcoin, trading above $70,400, has sparked discussions about whether this breakout confirms a bullish trend for Bitcoin’s weekly price range.
Market Dynamics
In the wake of Bitcoin reaching its weekly high of $72,668 on April 8, its price experienced a slight retreat, stabilizing above $70,413. This minor pullback of 0.55% over the past day has not dampened the bullish sentiment among traders, as evidenced by CoinMarketCap data. The dramatic liquidation of leveraged positions, totaling $186.8 million, with Bitcoin-specific liquidations at $61.6 million, highlights the volatility and high stakes involved in the crypto market. Moreover, Binance, the world’s leading exchange, witnessed the largest single liquidation order, valued at $4.49 million in Bitcoin.
Despite the significant liquidations, the amount of short Bitcoin liquidations recorded was less than a previous peak on April 2, which saw $38 million in shorts liquidated. This comparison underscores the dynamic nature of the market and the risks associated with leveraged trading. As Bitcoin’s price edges closer to the $73,000 mark, traders are on high alert for potential liquidations, which could surpass $507 million on Binance alone, escalating to $666 million if the price hits $73,500.
The resistance level around $73,000, near Bitcoin’s all-time high, is now a critical point for traders. It not only serves as a significant barrier but also a potential trigger zone for short liquidations. Additionally, the aftermath of these liquidations has led to a healthier Bitcoin futures funding rate, indicating a market reset and possibly lower leverage levels among traders.
Bitcoin’s Bullish Outlook
Bitcoin’s ability to retest and surpass the previous all-time high of $69,000 has been a key indicator of its bullish momentum. This breakout from the weekly price range was a crucial signal needed for confirming a positive trend in the market. Moreover, the recent rally in Bitcoin’s price comes from inflows from spot Bitcoin exchange-traded funds and growing anticipation for the next Bitcoin halving event.
Matteo Greco, a research analyst at digital asset firm Fineqia, suggests that the Bitcoin rally could continue well beyond the halving, potentially extending into the second quarter of 2025. Based on historical patterns observed after previous halving events, the market could experience a sustained uptrend lasting 9 to 18 months, leading to a peak in the cycle. Lastly, this pattern suggests that the remaining months of 2024 and into early 2025 could be a period of significant growth for Bitcoin, offering a promising outlook for investors and traders alike.