- Bitcoin saw some potent price action yesterday, with bulls sending it rallying from the mid-$20,000 region to highs of $23,700
- The selling pressure here proved to be quite significant and slowed its growth, but the cryptocurrency does appear to be poised to see further upside
- One analytics firm explained in a recent tweet that a massive onslaught of short-sided liquidations fueled this movement
- Over the past few days, over $1 billion in short positions have been liquidated
- This may be one of the sole factors that helped add to the ferocity of this movement
- If more bears try to fade the rally to $23,700 and begin stacking 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 timescale, with its macro trend resting firmly in bulls’ control.
Traders have noted that where the crypto trends in the mid-term should depend largely on its continued reaction to the upper-$23,000 region’s selling pressure.
A break above this level would continue the trend of price discovery that Bitcoin is currently seeing and potentially open the gates for a move significantly higher.
Bitcoin Shows Signs of Strength Following Rejection at $23,700
Yesterday, Bitcoin’s price incurred some unprecedented momentum that allowed it to add thousands to its price in a matter of hours.
This led it from the mid-$20,000 region to highs of $23,700, which is where it finally began finding some serious selling pressure that slowed its ascent and caused it to drift lower.
It later retested this level and was once again unable to break above it. This confirms that this is a key near-term resistance to watch, with a break above it potentially catapulting Bitcoin significantly higher.
Analytics Firm: BTC Price Boosted by Massive Short Liquidation Spree
It appears that Bitcoin’s recent uptrend has been boosted by the mass liquidations seen amongst bears.
One analytics platform noted that over a billion dollars’ worth of short positions has been liquidated over the past three days.
“BTC yesterday, a summary: – Bitcoin made a new ATH, $23,776 ( Coinbase ) – HUGE trading volume: $80 billion on future markets, $10 billion on spot markets! – $800 million got liquidated: both longs and shorts – over the previous two days $1 billion shorts got liquidated,” he said.
Image Courtesy of Coinalyze.
Because short-side liquidations have bolstered this upwards momentum, Bitcoin bears must continue adding to these positions following rejections at levels at $23,700, as this will give bulls fuel to catalyze further upside.
Featured image from Unsplash. Charts from TradingView.