Bitcoin price surges above $21,000 as 3-day short liquidations approach $300M

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Bitcoin (BTC) continued its stunning comeback on January 14 as $21,000 emerged for the first time since early November.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingViewBitcoin Breaks Key Trendline For First Time From $69,000

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it hit highs of $21,247 on Bitstamp overnight.

The pair had faced major suspicion after starting to recover from a serious lag during the week, with analysts warning that a retracement could occur at any moment.

Nevertheless, only brief periods of consolidation have accompanied Bitcoin’s ascent, with weekly gains of almost 25%.

In doing so, BTC/USD pulled out its realized price at $19,700, the former all-time high from 2017, $20,000, and the 200-day moving average. The latter experienced its first resistance/support challenge since October 2021, a month before Bitcoin’s most recent all-time high.

BTC/USD 1-day candle chart (Bitstamp) with 200-day moving average. Source: Trading View

“Similar to ETH, BTC is gaining momentum,” Material Indicators, an on-chain analytics resource, noted of Bitcoin beginning to copy the strength of Ether (ETH) in short periods.

A post on Twitter added that the price action “exceeded critical resistance at the 200-day moving average and the 2017 Top (BTC)/2018 Top (ETH).”

“Buckle up for volatility!” Material indicators concluded.

“There are 2 days left, but this weekly btc candle is a strong AF breaking very important trendlines and the low-end momentum is still strong,” popular trader Bluntz summed up about the upcoming weekly close. of the graph.

Fellow trader and analyst Rekt Capital went further, drawing comparisons to a 2019 event that launched an entire Bitcoin bull market after the macro low of the previous halving cycle in December 2018.

“The current BTC weekly candle is very close to matching the April 2019 weekly candle which confirmed a new BTC bull market,” he commented alongside a chart.

BTC/USD annotated chart. Source: Rekt Capital/ TwitterBitcoin’s short liquidations set an 18-month record

Amid the now rare bull run, Bitcoin unleashed severe pain for bears, liquidating hundreds of millions of dollars in short positions.

Related:Bitcoin Gained 300% the Year Before the Last Halving Is 2023 Different?

According to Coinglass, these totaled around $125 million for January 14 alone, with the period from January 11 bringing nearly $300 million in short liquidations.

Including altcoins, liquidations totaled nearly $775 million for the same three-day period.

Crypto liquidations chart. Source: Coinglass

Commenting on short-term futures contract sell-offs, Dylan LeClair, principal analyst at UTXO Management, noted that these had reached their highest daily levels since mid-2021.

“In July 2021, Binance USDT-denominated futures went extremely short in BTC and paid an arm and a leg to do so,” he explained.

“USD-denominated shorts liq’d are the reverse effect of the unwinding of crypto-denominated longs. The summer low of 30,000 was set on the day of FTX’s new rise.” Source: Dylan LeClair/Twitter

The views, thoughts and opinions expressed herein are the sole authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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