- Bitcoin saw some forceful price action yesterday, with bulls sending it rallying from the mid-$ 20,000 region to highs of $ 23,700
- The sales pressure here proved to be quite significant and slowed its growth, but the cryptocurrency seems ready to see further upside
- One analytics firm explained in a recent tweet that a massive attack of short sided liquidations is fueling this move
- Over the past few days, over $ 1 billion in short positions have been eliminated
- This may be one of the only factors that helped add to the ferocity of this movement
- If more bears try to fade the rally to $ 23,700 and start piling up short positions, it could open the gates for further upside
Bitcoin and the rest of the crypto market have seen some mixed price action on a short-term schedule, with its macro trend firmly resting in bull control.
Traders have indicated that the mid-season crypto trends should depend largely on its continued response to the $ 23,000 region’s top selling pressure.
A cut above this level would continue the price discovery trend that Bitcoin is currently seeing and potentially open the gates for a significantly higher move.
Bitcoin Shows Signs of Strength following Rejection at $ 23,700
Yesterday, the price of Bitcoin rose some unprecedented momentum that allowed it to add thousands to its price in just a few hours.
This led him from the mid-$ 20,000 region to peaks of $ 23,700, which is where he found severe sales pressure that slowed his ascent and caused him to drift lower.
Later, he re-tested this level and again failed to break above it. This confirms that this is a key near-term objection to watch, with a cut above it possibly catapulting Bitcoin significantly higher.
Analytics Company: BTC Price Boosted by Massive Short Liquidation Spree
Bitcoin’s recent rise appears to have been boosted by the mass liquidations seen among bears.
One analytics platform noted that over a billion dollars worth of short jobs have been eliminated over the past three days.
“Yesterday BTC, summary: – Bitcoin made ATH new, $ 23,776 (Coinbase) – Huge trading volume: $ 80 billion on future markets, $ 10 billion on spot markets! – $ 800 million was wiped out: longing and shorts – over the previous two days $ 1 billion shorts were canceled, ”he said.
Image Courtesy of Coinalyze.
Because short-side liquidations have strengthened this upward momentum, Bitcoin bears must continue to add to these positions following rejections at levels at $ 23,700, as this will fuel bulls to further catalyze upside.
Featured image from Unsplash. Charts from TradingView.