Bitcoin’s price surge above $70,400 resulted in over $102 million worth of leveraged short positions being liquidated in the past 24 hours. This raises the question of whether BTC’s breakout from its weekly price range has been confirmed.
After reaching a weekly high of $72,668 on April 8, Bitcoin’s price experienced a slight dip, but still remained above the $70,413 mark, dropping by 0.55% in the 24-hour period leading up to 9:45 am UTC, according to data from CoinMarketCap.
Following BTC’s ascent to its weekly high, the cryptocurrency market witnessed over $102 million worth of leveraged short positions being liquidated in the past 24 hours, resulting in a total of $186.8 million worth of liquidations, as reported by Coinglass data.
Out of the total liquidations, BTC liquidations accounted for $61.6 million, with short positions amounting to over $33.9 million and leveraged longs totaling $27.7 million. The largest single liquidation order occurred on Binance, which amounted to $4.49 million worth of Bitcoin.
However, the $33 million worth of short Bitcoin liquidations is lower compared to the $38 million witnessed on April 2. On that day, BTC experienced a sudden 5% drawdown, leading to the liquidation of $165 million worth of leverage in less than two hours.
If BTC’s price rallies back to $73,000, it could result in over $507 million worth of cumulative short leverage being liquidated on Binance. Additionally, cumulative short liquidations on Binance would reach $666 million if the price reaches $73,500.
Traders are advised to monitor the $73,000 level, which now acts as a significant resistance and a potential short-liquidation zone for BTC price.
Following the recent liquidations, the Bitcoin futures funding rate has witnessed a healthy reset, falling to 0.0163% on April 9, which is almost three times lower than the previous day. However, it is still notably lower than the three-week high of 0.0714% recorded on April 1.
Bitcoin’s price breakout has been confirmed after successfully retesting the old all-time high of $69,000. This breakout was necessary to confirm future bullish momentum, according to popular crypto analyst Rekt Capital.
The recent price rally of Bitcoin can be attributed to the inflows from spot Bitcoin exchange-traded funds and the anticipation surrounding the upcoming Bitcoin halving, as stated by Matteo Greco, a research analyst at digital asset firm Fineqia. Greco expects a sustained Bitcoin rally following the halving, which could last well into the second quarter of 2025.