Bitcoin bears feel the heat as BTC looks all set to hit $60k

• Recent Bitcoin surge leads to $285 million in liquidations, affecting short orders.
• Put-to-call ratio declines and implied volatility declines.

Bitcoin [BTC] recently broke free from its stagnant state around the $51,000 range, experiencing a significant surge that left both investors and bears grappling with the aftermath.

Liquidations on the rise

According to AMBCrypto’s analysis of Coinglass’ data, in the past 24 hours, the surge prompted $285 million in liquidations, with short orders taking a substantial hit at $211 million.

A staggering total of 74,800 individuals faced liquidation, with the largest single order, worth $4.81 million, occurring on Binance for BTCUSDT.

On one hand, the liquidation of short orders could contribute to upward pressure on Bitcoin’s price, potentially creating a more favorable environment for long positions.

Conversely, the sheer volume of liquidations reflects a market shakeup, indicating potential volatility and uncertainty in the short term.

Looking at trader behavior

Additionally, Bitcoin’s put-to-call ratio witnessed a decline during this period. This shift implies a decrease in bearish sentiment, as the ratio signifies the proportion of bearish (put) options to bullish (call) options.

A lower put-to-call ratio suggests a more optimistic market sentiment, potentially contributing to the positive momentum of Bitcoin’s price.

Additionally, Bitcoin’s Implied Volatility, a measure of market expectations for future price fluctuations, also experienced a decrease. While a decline in volatility can signal a more stable market, it may also indicate reduced speculative interest.

What are holders up to?

Examining MVRV ratios provided more insights into the selling pressure on BTC holders. The decline in MVRV ratio suggests profit-taking among holders despite the surge in price.

Profit-taking indicates confidence among holders. However, it might also introduce selling pressure, potentially leading to short-term corrections.

Surprisingly, despite the surge in BTC’s price, the total number of holders did not surge to previous levels. This observation suggests that the recent uptick in price may be attributed to older holders accumulating, rather than an influx of new participants.

At press time, BTC was trading at $56,308.79 and its price had grown by 9.66% in the last 24 hours.

Read Bitcoin’s [BTC] Price Prediction 2024-25

The volume at which it was trading at had also grown by 235.73% during the same period and had reached a total of  $48,941,296,302.

If the optimism around BTC continues, its price could target $60,000 soon.