Bitcoin prices have continued their surge and, on Wednesday, were approaching nearly $66,000. That has triggered over $200 million in liquidations across the broader crypto market. BTC was trading at $65,383.14 at press time, a 3.45% surge from the intra-day low.
Source: CoinMarketCap
Data from Coinglass indicates that over the past 24 hours, more than $65.2 million in Bitcoin derivatives positions have been liquidated. This includes $34.8 million in BTC short liquidations, coupled with $28.15 million in BTC long liquidations, primarily through crypto exchanges OKX and Binance. More so, if Bitcoin continues its rally closer to all-time highs, there will be massive shorts’ liquidation of leveraged positions, which might reach over $19 billion.
Market Analysts Predict Uptrend Continuation
Analysts say that the latest rally in the price of Bitcoin indicates that this downtrend is over, and investors are preparing for a significant new uptrend. In the same line of thought, the renowned crypto analyst Rekt Capital stated that the move into a new cluster zone above $65,000 was likely to create enough momentum for another bullish continuation in the Bitcoin price, which varies between $65,000 and $71,500. And here comes the optimistic perspective with strong rallies as an increased interest flow towards bitcoin, crossing key price levels.
The moment Bitcoin breaks $65,000 (blue) is the moment Bitcoin will form a new red cluster of price action
Breaking $65,000 would mean price would be ready to move inside the $65,000-$71,500 region$BTC #Crypto #Bitcoin https://t.co/yxOhRsmVU9 pic.twitter.com/TZMP37ufjx
— Rekt Capital (@rektcapital) July 16, 2024
At the same time, the outflow of 13,000 BTC from the defunct cryptocurrency exchange Mt. Gox already created a market reaction, provoking fears about selling pressure. Meanwhile, those fears were not shared by the CEO of Cryptoquant, Ki Young Ju, who said that the market had previously responded to substantial sales of Bitcoin more than once without a significant decrease in price.
Ju said it is important to note that even with the sell-off of $3 billion worth of Bitcoin from Mt. Gox, it is only a tiny fraction of the increase in realized cap for this current bull cycle. Other analysts also tend to agree with the same view, as they believe the potential selling pressure from Mt. Gox is something the market can manage.
Institutional Demand and Market Resilience
Strong institutional demand has also contributed to the recent price recovery. Data from Glassnode shows that the run-up in the price of Bitcoin to $65,000 was caused by the “complete exhaustion” of pressure among sellers, especially from large entities like the German government.
In fact, the market had already absorbed this government’s selling of 48,000 BTC, reflecting resilience. Pseudonymous trader Mags pointed to the fact that Bitcoin is now trading under the 200-day moving average—an event that hasn’t occurred since August 2023. Then, the world’s largest cryptocurrency rallied by 17.5%, propelling to north of $47,000 in the span of two months. If the history is repeated, Bitcoin might be on its way to $70,000 very soon.
The subsequent rise to nearly $66,000 forced liquidations worth over $200 million across most of the crypto market. Should Bitcoin continue higher to retest previous highs, shorts could potentially face more massive liquidations.
On the other hand, there has been a massive inflow into exchange-traded funds (ETFs), which further added to the price recovery.
However, the prospect of a more crypto-friendly US administration under Donald Trump has also buoyed market sentiment. There were stronger expectations for favorable crypto policies with the odds of Trump winning the 2024 election when Trump picked Ohio Senator JD Vance, a known Bitcoin supporter, as his vice-presidential running mate.
