The Bitcoin price surge toward $87,000 has ignited a wave of short liquidations, forcing bearish traders to shut their positions at a loss. Within the last 24 hours, the overall market liquidation passed $200,000, with the vast majority of this loss coming from short positions.
Bitcoin Price Surge Trigger Massive Short Liquidations
Based on liquidation heatmaps from Coinglass, Bitcoin alone has accounted for $77.33 million in liquidations, with $67.04 million coming from short positions. This means that a lot of short traders expected BTC to say no but were forced to exit as prices moved against them and hit the $87,000 mark.
Coinglass shows that previously 24 hours, the overall crypto market liquidations, which surpassed $200 million, saw a $143 million loss from short positions. Exchange data also reveals that Bybit, a renowned crypto exchange, led with $32.65 million in BTC short liquidations, followed by Binance with $16.45 million, Gate.io and other exchanges.
Notably, this large-scale liquidation event signals a classic short squeeze, where long positions are more favoured as short traders are pushed to purchase at a loss, resulting in a stronger surge within the BTC price. If Bitcoin continues its momentum and surpasses the $87,000 price point, further liquidations could speed up its upward movement and push it to recent highs.
Currently, Bitcoin’s price is trading at $87,415, closely regaining its previous bullish momentum. The cryptocurrency has skyrocketed by 3.65% previously 24 hours, aligning with the rise in liquidation amongst short traders.
Just this past month, Bitcoin was trading under $85,000, with this decline driven by broader market volatility and widespread liquidations. Despite the value crash, the cryptocurrency’s trading volume has remained relatively high, increasing by 124%, in line with CoinMarketCap.
With BTC finally reclaiming the $87,000 mark, analysts are optimistic about its future outlook. Crypto VIP signal, an analyst on X (formerly Twitter), has revealed that the subsequent local resistance for Bitcoin is between $87,000 and $87,400. If the pioneer cryptocurrency can surpass this range, the analyst predicts a surge toward $89,000 – $90,000 after which one other rally between $92,000 – $93,000.
Whales Go On Buying Spree As BTC Surpasses $87,000
While Bitcoin surges past $87,000, whales are accumulating large amounts of BTC despite growing concerns of a possible decline. Notably, an X parody of Michael Saylor, the founding father of MicroStrategy, has highlighted a recent increase in Bitcoin whale activity.
Based on the reports, whales are buying Bitcoin during price dips, possibly in anticipation of future price increases. A chart from CryptoQuant was shared, tracking Bitcoin’s liquidity inventory and demand from accumulator addresses.
The circled regions within the chart show periods when whale demand spiked significantly, aligning with price surges. The recent increase in whale activity suggests a renewed interest in BTC as its price attempts to get well from previous price declines and market volatility.
Featured image from iStock, chart from Tradingview.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and every page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.