Bitcoin Breakout Triggers $102M Liquidation; Rally Anticipated Post-Halving
Summary:
Bitcoin's rise above $70,400 triggered the liquidation of over $102 million worth of leveraged short positions in the past 24 hours. After retracing from a weekly high of $72,668, Bitcoin remained above the $70,413 mark. Overall, the cryptocurrency market saw $186.8 million worth of total liquidations. If Bitcoin price rallies back to $73,000, additional $507 million worth of short leverage could be liquidated on Binance. Anticipation surrounding the upcoming Bitcoin halving and inflows from spot Bitcoin ETFs mainly attribute to the currency's recent price surge.
In the last day, leveraged short positions in Bitcoin (BTC) exceeding $102 million were forcibly closed as the cryptocurrency trended above $70,400. Is this a certainty that BTC's weekly price range has seen a breakout? Over $33 million in Bitcoin shorts were forcibly shut down. After reaching a weekly peak of $72,668, Bitcoin's price made a slight retreat to stay above the $70,413 mark, declining 0.55% in the 24-hour period leading up to 9:45 am (UTC), as CoinMarketCap data indicates.
Following the hike of BTC to its weekly peak, more than $102 million worth of leveraged short positions were forcibly closed in the crypto market within the last 24 hours, contributing to a total liquidation worth $186.8 million, according to data from Coinglass.
Around $61.6 million worth of BTC were liquidated, with over $33.9 million in short positions and $27.7 million leveraged longs. The highest single liquidation order was valued at $4.49 million in Bitcoin on Binance, the largest global exchange.
Nevertheless, the Bitcoin short liquidations valuing $33 million are lower than the $38 million short liquidations from April 2. Furthermore, a sudden 5% drop in BTC on April 2 led to a $165 million wipeout of leverage in under two hours.
Moving forward, if BTC price surges back to $73,000, over $507 million worth of accumulated short leverage would be forcibly closed on Binance. If the price reaches $73,500, Binance would witness collective short liquidations worth $666 million.
Considering predictions, the Bitcoin futures funding rate experienced a healthy reset after the liquidations, falling to 0.0163% on April 9, almost triply lower than the previous day. Still, it is significantly lower than the three-week high of 0.0714% on April 1.
Now, Bitcoin price has effectively tested the prior all-time high of $69,000, making a successful breakout from the weekly range, assuring further bullish momentum as per an April 7 X post by popular crypto analyst Rekt Capital.
Bitcoin's recent price surge is mainly due to the inflow from spot Bitcoin exchange-traded funds (ETFs) and the expectancy linked to the upcoming Bitcoin halving, according to Matteo Greco, research analyst at digital asset firm Fineqia. Greco anticipates a continuous Bitcoin rally following the halving, potentially lasting well into the second quarter of 2025.
Published At
4/9/2024 5:22:14 PM
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