BTC Surpasses $43,000, Triggering Liquidations
After surpassing the $42,000 mark on Monday, Bitcoin (BTC) has reached over $43,000 for the first time in over a year. This surge in price has resulted in a significant number of leveraged positions being liquidated.
$45,000 Resistance Level and Short Squeeze Risk
According to BTCM Chief Economist Youwei Yang, the next crucial resistance level for Bitcoin is $45,000. He suggests that there is an elevated likelihood of a short squeeze occurring above this threshold. Yang warns that if the market becomes increasingly volatile, it could lead to higher market volatility with both short squeeze and long liquidation happening simultaneously.
High Level of Liquidated Leveraged Positions
Data from Coinglass shows that there has been a high level of liquidated leveraged positions in the cryptocurrency market within the past 24 hours. This indicates the impact of the recent market volatility on traders.
Bitcoin’s ‘Bullish Catapult’
Analysts from Bitfinex have identified two significant BTC price levels that have experienced a large number of liquidations due to market volatility. These levels are $41,950 and $42,200. Above these levels, Bitfinex analysts suggest that Bitcoin could experience a “bullish catapult” as shorts are forced to buy in order to close their trades.
As of 12:27 p.m. ET on Tuesday, Bitcoin was trading at $43,321, marking a 4.3% increase.
About the Author
Brian McGleenon is a UK-based markets reporter for The Block. He has extensive experience in financial journalism and production, having worked for various news outlets such as Fuji Television, The Independent, Yahoo Finance, The Evening Standard, and The Daily Express. Brian is also involved in screenwriting and producing films. In addition to web3 and cryptocurrency developments, he has an interest in geopolitics, environmental issues, artificial intelligence, and longevity research. You can contact him via email at [email protected]
Hot Take: Bitcoin’s Surge Continues with Liquidations and Resistance Ahead
Bitcoin’s recent surge past $43,000 has led to liquidations of leveraged positions in the market. As it approaches the crucial resistance level of $45,000, there is a heightened risk of a short squeeze. This could result in increased market volatility and simultaneous short squeeze and long liquidation. Analysts also point out that Bitcoin’s price levels of $41,950 and $42,200 have seen significant liquidations due to market volatility. However, if Bitcoin surpasses these levels, it could experience a “bullish catapult” as shorts are forced to buy. Overall, Bitcoin’s upward momentum continues with potential challenges and opportunities ahead.
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