Monday, February 6, 2023

Bitcoin price blasts past $21K as 3-day short liquidations near $300M

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Bitcoin (BTC) continued a shocking comeback on Jan. 14 as $21,000 appeared for the primary time since early November.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

Bitcoin cracks key development line for first time since $69K

Knowledge from Cointelegraph Markets Pro and TradingView adopted BTC/USD because it hit highs of $21,247 on Bitstamp in a single day.

The pair had faced major suspicion after it began to make up some serious lost ground through the week, with analysts warning that a retracement could occur at any time.

Nonetheless, only brief periods of consolidation accompanied Bitcoin’s ascent, with weekly gains sitting at nearly 25%.

In doing so, BTC/USD took out its realized price at $19,700, an old all-time high from 2017, $20,000 and the 200-day moving average. The latter saw its first resistance/ support challenge since October 2021, one month before Bitcoin’s most recent all-time high.

BTC/USD 1-day candle chart (Bitstamp) with 200-day moving average. Source: TradingView

“Similarly to ETH, BTC is gaining momentum,” on-chain analytics resource Material Indicators noted about Bitcoin starting to repeat Ether (ETH) strength on short timeframes.

A tweet added that value motion “has pushed previous vital resistance on the 200-Day Transferring Common and the 2017 High (BTC)/ 2018 High (ETH).”

“Buckle up for volatility!” Materials Indicators concluded.

“2 days to go however this weekly btc candle is stable AF breaking very key trendlines and low timeframe momentum continues to be going sturdy,” common dealer Bluntz, in the meantime, summarized in regards to the upcoming weekly chart shut.

Fellow trader and analyst Rekt Capital went further, drawing comparisons to an event from 2019 that kickstarted an entire Bitcoin bull market after the previous halving cycle’s macro low in December 2018.

“Current BTC Weekly Candle is very close to equaling the Weekly Candle from April 2019 that confirmed a new BTC Bull Market,” he commented alongside a chart.

BTC/USD annotated chart. Supply: Rekt Capital/ Twitter

Bitcoin brief liquidations set 18-month file

Within the midst of the now uncommon upside, Bitcoin unleashed critical ache for bears, liquidating a whole bunch of hundreds of thousands of {dollars} in brief positions.

Associated: Bitcoin gained 300% in year before last halving — Is 2023 different?

According to Coinglass, these totaled round $125 million for Jan. 14 alone, with the interval from Jan. 11 onward bringing almost $300 million of brief liquidations.

Together with altcoins, liquidations totaled almost $775 million for a similar three-day interval.

Crypto liquidations chart. Supply: Coinglass

Commenting on futures brief liquidations, Dylan LeClair, senior analyst at UTXO Administration, famous these hit their highest day by day ranges since mid-2021.

“July 2021 noticed Binance USDT denominated futures going extraordinarily brief BTC and paying and arm & a leg to do it,” he explained:

“USD denominated shorts getting liq’d is reverse impact of crypto denominated longs unwinding. 30k summer time backside was set day of FTX recent increase.”

Bitcoin futures 24-hour short liquidations chart. Source: Dylan LeClair/ Twitter

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.