Bitcoin saw strong price action yesterday, with the bulls pushing its price from the middle of the $ 20,000 region to highs of $ 23,700.
The selling pressures here turned out to be quite significant and slowed its growth, but the cryptocurrency appears poised to see further recovery.
An analysis firm said in a tweet that this move was fueled by a massive onslaught of short-side liquidations.
Short positions of over $ 1 billion have been liquidated in the past few days
This could be one of the only factors that contributed to the violence of this movement.
If more bears try to block the rally to $ 23,700 and begin short positions, it could open the gates for further upside move.
Bitcoin and the rest of the crypto market have seen some mixed price action on a short-term timescale, with the macro trend firmly in control of the bulls.
Traders comment that the medium-term trend of the cryptocurrency is likely to depend largely on the response to selling pressures in the upper $ 23,000 region.
A breakout above this level would continue the price discovery trend that Bitcoin is currently experiencing and potentially open the gates to a significantly higher movement.
Bitcoin is showing signs of strength after being rejected at $ 23,700
Yesterday, the Bitcoin price experienced unprecedented momentum that enabled it to gain tremendously within a few hours. This took Bitcoin from the middle of the $ 20,000 region to highs at $ 23,700, where it eventually encountered serious selling pressure that slowed its rise and caused it to drift down.
BTC later retested this level and again was unable to break it. This confirms that this is an important short-term resistance to watch – a breakthrough above it could potentially catapult Bitcoin significantly higher.
Analysis firm: BTC price boosted by massive short liquidations
It appears that Bitcoin’s recent uptrend was fueled by the massive liquidations among the bears.
An analysis platform comments that short positions worth over a billion dollars have been liquidated in the last three days.
„BTC yesterday, a summary: – Bitcoin made a new ATH, $ 23,776 (Coinbase) – HUGE trading volume: $ 80 billion in futures markets, $ 10 billion in spot markets! – $ 800 million liquidated: both long and short positions – in the last two days $ 1 billion short positions were liquidated. „