Bitcoin
Is Bitcoin’s run to $73K sustainable? $40M in liquidations suggests…
Bitcoin has gone above $72,000, and short positions are already feeling the heat.
- Bitcoin has added over 5% in the last three days.
- BTC supply in profit was now over 97%.
Bitcoin [BTC] exhibited a glimpse of recovery over the past two days. Still, it has embarked on a more significant upward trend in the past few hours.
This notable price rise has led to a significant increase in the volume of short liquidations, coinciding with a continued rise in the percentage of BTC supply in profit.
Bitcoin retests old ATH
Bitcoin has reignited optimism among holders, with an impressive increase of over 4% observed at the time of writing.
AMBCrypto’s analysis of the daily timeframe price trend showed Bitcoin trading at over $72,000, reflecting a surge of over 4%. This marked a consecutive increase over the last three days, totaling over 5%.
Notably, this current price trend brought Bitcoin closest to its all-time high of over $73,000.
Further analysis indicated that BTC’s support lies around the $65,000 and $62,000 price zone, with resistance at around $71,000.
With the current price trend breaking the resistance, a continued uptrend may signal a new price peak.
Additionally, AMBCrypto’s analysis of Bitcoin’s Relative Strength Index (RSI) revealed that it has remained above the neutral line since surpassing it in February.
However, price declines have brought it close to the neutral line, weakening its bull trend. The recent price surge has propelled the RSI above 60, indicating the growing strength of the current bull run.
Short liquidation surges with price
Bitcoin’s price surge has triggered a significant volume of short liquidations. Analysis of the liquidation chart on Coinglass showed that, at the time of writing, the short liquidation volume was over $40 million.
In contrast, the long liquidation volume was around $4 million. This marked the highest short liquidation recorded in the last four days and the highest liquidation observed in the last three days.
Source: Coinglass
If the price continues to increase, further growth in the short liquidation volume is possible before the current trading day closes.
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Bitcoin sees a boost in supply in profit
Between the 3rd of April to press time, nearly 1 million Bitcoins have transitioned into a profitable position.
The percentage of BTC supply in profit showed that as of 3 April, the number of BTC supply in profit stood at around 18.3 million after experiencing a sharp decline.
However, the number rebounded from there, and at the current time, it was over 19.1 million. This signifies an increase from around 93% to over 97% of BTC supply in profit at the current time.
Source: Santiment
