Bitcoin(BTC)surgedtothe$65,000pricelevel,reachingadailyhighof$66,482.Thecryptocurrencyhittheresistancezone,andanuptrendwillbeconfirmedifBTCmaintainspriceactionabove$66,000.
Santiment,ablockchainanalysisplatform,notedthisisthefirsttimesinceSeptember27ththatBitcoinhasbrokenabovethe$66,000pricelevel.Theliquidationofshortsinthepast24hoursisamajordrivingforcebehindthissurgeinBTC’sprice.Santimentexplained:
“Astraderswithshortpositionswereforcedtocloseout(eithervoluntarilyorthroughmargincalls),itresultedinarapidpriceincrease,sparkingevenmoreupwardmomentum.”
Additionally,Bitcointradingvolumealsohitatwo-weekpeakasBTCbeganitssurgestartingat15:35UTC,Monday.ItisimportanttonotethatDeFiliquidationsforBitcoinsawtheirsecond-highestspikeinoverthreemonthsduringthecurrentcycle.
Santimentpointedoutthatthelasttimeliquidationsofthismagnitudewereseen,“Bitcoinwentona20-day,+29%pricerally.”Theblockchainanalysisplatformbelievesthatanotherstrongrallyisonthehorizonbecausehistorically,massiveDeFiliquidationsleadtohigherpricesforBitcoin.
Bitcoinat$70,000?
OnMonday,predictionsofBitcoinreaching$70,000andaboverosetotheirhighestlevelssinceAugust,whichsuggeststhatinvestorsareexpectingabreakoutfortheleadingdigitalassetastradingvolumealsosoars.
AccordingtoCoinMarketCap,Bitcoinistradingat$65,299,up2.5%inthepast24hours.Overthepastweek,themarketleaderhasgrownaround4.6%,butBTCremains11.46%lowerthanitsall-timehighof$73,750,witnessedinJanuarythisyearfollowingtheapprovalofspotBitcoinexchange-tradedfunds(ETFs)intheUnitedStates.
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