Bitcoin breaks the major trend line for the first time in $69K
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it reached highs of $21,247 on Bitstamp overnight.
The pair faced significant skepticism after it started to recoup some serious losses during the week, with analysts warning of a possible rebound at any time.
However, only brief consolidation periods have accompanied bitcoin’s rally, with weekly gains of nearly 25%.
In doing so, BTC/USD took out its price realization at $19,700, the old all-time high from 2017, $20,000 and the 200-day moving average. The latter saw its first resistance/support challenge since October 2021, one month before bitcoin’s all-time high.
BTC/USD 1-day candlestick chart (Bitstamp) with a 200-day moving average. Source: TradingView
“Similar to ETH, BTC is Gaining Momentum,” an on-chain analytics resource’s Material Indicators notes about Bitcoin starting to copy Ether
Strength in the short timeframes.
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The tweet added that the price action “has cleared critical resistance at the 200-day moving average and (BTC) high/2018 high (ETH).
“Fasten your seatbelts for the swings!” Physical indicators concluded.
Meanwhile, well-known trader Plantz summed up, meanwhile, “Two days left but this weekly btc candle is a strong auto focus piercing the very major trend lines and the lower time frame momentum is still strong.”
Fellow trader and analyst Rekt Capital went further, drawing comparisons to an event from 2019 that kicked off an all-out bull market for Bitcoin after the previous halving cycle’s total decline in December 2018.
“The current weekly BTC candle is very close to par with the weekly candle from April 2019 which confirmed a new bull market for BTC,” it captioned along with the chart.
Annotated BTC/USD chart. Source: Rekt Capital / Twitter
Bitcoin short liquidations hit an 18-month record
In the midst of a rare bull run now, Bitcoin has unleashed anguish for the bears, liquidating hundreds of millions of dollars in short positions.
Related: Bitcoin Gains 300% in the Year Before the Latest Halving – Is 2023 Different?
According to Coinglass, that fund totaled about $125 million on January 14 alone, with the period from January 11 onwards bringing in nearly $300 million in short liquidations.
Including altcoins, liquidations totaled nearly $775 million for the same three-day period.
Cryptocurrency liquidation scheme. Source: Coinglass
Commenting on futures short liquidations, Dylan LeClair, senior analyst at UTXO Management, noted that these positions have reached daily highs since mid-2021.
“In July 2021, the Binance USDT-denominated futures contract severely shorted BTC and pushed an arm and a leg to do so” he explained:
“USD-denominated shorts getting liquidity is the opposite effect of unbundling crypto-denominated longs. Summer low of 30k set for new FTX rally day.”