Key Points
- Over $102 million worth of leveraged short positions in Bitcoin were liquidated in the past 24 hours.
- Bitcoin’s price breakout from its weekly range appears to be confirmed, trading above $70,400.
Bitcoin, trading above $70,400, has seen over $102 million worth of leveraged short positions liquidated within the last 24 hours.
Bitcoin Short Positions Liquidated
Following a weekly high of $72,668, Bitcoin’s price retracted to trade above the $70,413 mark. This represents a 0.55% decline in the 24 hours leading up to 9:45 am (UTC).
The rise of Bitcoin to its weekly high led to the liquidation of over $102 million worth of leveraged short positions in the cryptocurrency market. The total liquidations in the same period amount to $186.8 million.
Liquidation Details
Bitcoin liquidations amounted to $61.6 million. This includes over $33.9 million in short positions and $27.7 million leveraged longs. The largest single liquidation order was $4.49 million worth of Bitcoin on Binance.
The $33 million worth of short Bitcoin liquidations is lower than the $38 million short liquidations on April 2. Furthermore, Bitcoin’s sudden 5% drawdown on April 2 liquidated $165 million of leverage in less than two hours.
If Bitcoin’s price rallies back to $73,000, over $507 million worth of cumulative short leverage would be liquidated on Binance. If it reaches $73,500, cumulative short liquidations on Binance would amount to $666 million.
The $73,000 level, around the current all-time high, now acts as significant resistance and a potential short-liquidation zone for the Bitcoin price.
Following the liquidations, the Bitcoin futures funding rate fell to 0.0163% on April 9, almost three times lower than the previous day. However, it is still significantly lower than the three-week high of 0.0714% on April 1.
Bitcoin Price Breakout
Bitcoin’s price has successfully retested the old all-time high of $69,000, breaking out of the weekly range. This breakout was necessary to confirm future bullish momentum.
Bitcoin’s latest price rally can largely be attributed to inflows from spot Bitcoin exchange-traded funds (ETFs) and the anticipation surrounding the upcoming Bitcoin halving.
Historically, Bitcoin halving events have marked significant points followed by 9-18 months of uptrend, culminating in cycle peaks. If historical patterns repeat, we may witness an uptrend for the remaining nine months of 2024, leading to a cycle peak expected between Q4 2024 and Q2 2025.
