Bitcoin’s Remarkable Price Rally Spurs Massive Short Liquidations
Bitcoin’s recent surge towards the $87,000 mark has triggered significant short liquidations, compelling bearish traders to close their positions at a loss. Over the past 24 hours, the total market liquidations exceeded $200 million, with short positions bearing the brunt of the losses.
Bitcoin’s Price Surge Triggers Massive Short Liquidations
According to data from Coinglass, Bitcoin alone has contributed to $77.33 million in liquidations, with short positions accounting for $67.04 million of this total. This scenario highlights that numerous traders anticipating a decline in Bitcoin’s value were forced to exit their positions as the price rose, reaching the $87,000 milestone.
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Coinglass reports that the total crypto market liquidations have surpassed $200 million in the last 24 hours, with $143 million attributed to short positions. Exchange data reveals that Bybit, a leading crypto exchange, recorded $32.65 million in BTC short liquidations, followed by Binance with $16.45 million, Gate.io, and others.
This substantial liquidation event suggests a classic short squeeze, where long positions become more advantageous as short traders are compelled to buy at a loss, further propelling Bitcoin’s price upward. Should Bitcoin maintain its momentum and exceed the $87,000 threshold, additional liquidations could amplify its ascent to new heights.
Currently, Bitcoin is trading at $87,415, steadily regaining its bullish momentum. In the past 24 hours, the cryptocurrency has risen by 3.65%, coinciding with the increase in liquidations among short traders.
Just last month, Bitcoin was trading below $85,000, influenced by broader market volatility and extensive liquidations. Despite the downturn, the cryptocurrency’s trading volume has remained robust, increasing by 124%, according to CoinMarketCap.
With Bitcoin reclaiming the $87,000 mark, analysts remain optimistic about its future prospects. Crypto VIP Signal, an analyst on X (formerly Twitter), has identified the next local resistance for Bitcoin between $87,000 and $87,400. If Bitcoin can surpass this range, the analyst forecasts a potential surge towards $89,000 – $90,000, followed by another rally between $92,000 – $93,000.
Whales Embark on Buying Spree as Bitcoin Surpasses $87,000
As Bitcoin ascends past $87,000, whales are actively accumulating substantial amounts of BTC, despite rising concerns about a possible decline. An X parody account of Michael Saylor, the founder of MicroStrategy, has spotlighted a recent uptick in Bitcoin whale activity.
Reports suggest that whales are purchasing Bitcoin during price dips, possibly in anticipation of future price increases. A chart from CryptoQuant was shared, illustrating Bitcoin’s liquidity inventory and demand from accumulator addresses.
The chart highlights periods where whale demand surged significantly, coinciding with price increases. The recent rise in whale activity indicates renewed interest in Bitcoin as its price endeavors to recover from prior declines and market instability.
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