Bitcoin (BTC) goes into bullrun mode and propels the market into the green

With an increase of 11% in the space of 24 hours, Bitcoin (BTC) goes into “bullrun” mode and propels the cryptocurrency market into the green. Short-term sellers have been trapped and are taking sizable losses as BTC hurtles towards final resistance at $25,200.

Bitcoin Leads the Rise

Even as the cryptocurrency market showed signs of weakening and sellers expected to regain the edge against buyers, Bitcoin (BTC) decided to print a meteoric rise of more than 11% within 24 hours.

bitcoin rise february 16

Evolution of the price of Bitcoin (BTC) and rise of 11% in 24 hours

Bitcoin price is currently hovering around $24,600, and closed yesterday at $24,400above its previous local high dated February 2, 2023. We had not revisited these levels for more than 6 months.

In addition, Bitcoin is approaching the $25,200 mark, the former highest high reached in August 2022 following the huge crash in June. Exceeding this level would be a very positive sign of a bullish extension even more marked.

daily bitcoin price

Evolution of the price of Bitcoin (BTC) since June 2022

For once, it was BTC that led the dance on the market, outperforming the majority of altcoins. Ether (ETH) climbs 8.7%, BNB 7.7%, Cardano’s ADA prints 5.2% and Polygon (MATIC) is up 9.7%.

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Sellers participate in the rise

This week, investors were impatiently awaiting the announcement of the Consumer Price Indices (CPI) in the United States, a direct testimony to the state of inflation in the country. Following the announcement of a rather moderate result on Tuesday, the market did not particularly flinch.

In the short term, sellers have gradually regained control of buyers with a long/short ratio which was largely favorable to them. However, this created a huge pocket of liquidations in the $23,000 and $24,000 range on Bitcoin that the market tends to go after.

Concretely, a lot of sellers took leveraged positions by betting on the fall in the price of BTC when it was moving to $22,000. Millions of dollars worth of positions risked being liquidated if the price went the other way (up) and reached $23,000 and $24,000.

Closeouts 24H February 16

Liquidations in the cryptocurrency market in 24 hours

In 24 hours, more than $210 million in positions were liquidated following this sudden upward movement. In total, sellers account for 88.57% (or $187 million) of liquidations.

Note that this kind of mass seller liquidations often has the effect of propelling the market upwards. Indeed, they must either liquidate their positions or buy them back to save themselves, thus helping to push the price even higher.

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Sources: Trading View, TwitterCoinglass

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