Bitcoin's price surge past $70,000 on May 21 has dealt a significant blow to short sellers, liquidating $85 million in short positions and sparking renewed optimism among bulls. The latest rally, driven by relentless buying pressure, has positioned the cryptocurrency for potentially greater heights, with some predicting a move towards $100,000. However, questions remain about the sustainability of this uptrend.
Key Points:
Bitcoin (BTC) traded above $70,000, causing significant liquidations of short positions.
$85 million in BTC shorts were liquidated in the past 24 hours.
The surge is attributed to repeated buy liquidity and short squeezes.
Predictions include a potential rise to $100,000 if weekly timeframes confirm a breakout.
BTC price action faces major resistance, with some analysts cautioning against expecting an immediate continuation to new highs.
Bitcoin Surpasses $70,000, Crushing Short Sellers
Data from Cointelegraph Markets Pro and TradingView showed Bitcoin attempting to maintain its position above $70,000 after a strong push from buyers. The sudden price increase saw BTC/USD nearing $72,000, driven by significant buy liquidity and resulting in the liquidation of $85 million worth of short positions within 24 hours, according to CoinGlass.
Short Sellers Face Heavy Losses
The surge caught many short sellers off guard. Statistician Willy Woo noted that a month's worth of short positions had been liquidated, suggesting that bulls were targeting the remaining resistance levels that have been in place for some time. Woo indicated that one more layer of resistance remains before Bitcoin could potentially short-squeeze past its all-time highs.
Market Reactions and Bold Predictions
Popular trader Skew highlighted the potential influence of the United States' spot Bitcoin exchange-traded funds (ETFs) on the current market dynamics. With the U.S. spot Ether (ETH) ETFs decision looming, Skew predicted "important days to come." Ethereum also experienced significant gains, trading near $3,700 with an 18% increase over 24 hours and 25% over the week.
Major Resistance Ahead
Despite the bullish momentum, some market analysts remain cautious. BTC price action is currently facing major resistance, with perp premium positive for the first time in a month and a half, and funding rates at their highest levels since then. Analyst Skew emphasized that these conditions might not be conducive to the next major leg up, suggesting a potential temporary setback before any further significant gains.
Bitcoin's latest price surge past $70,000 has reignited optimism among bulls, liquidating a substantial number of short positions and driving speculation of a potential move toward $100,000. However, with significant resistance still in place and mixed sentiments among analysts, the sustainability of this rally remains uncertain. As market participants navigate these developments, all eyes will be on Bitcoin's ability to maintain its momentum and break through the remaining resistance levels.
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Disclaimer
This article is for informational purposes only and does not constitute financial advice. Always conduct your research and consult with a professional financial advisor before making any investment decisions.
Source: CryptoNews
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