© Reuters.
By Senad Karaahmetovic
Bitcoin () is up nearly 30% year-to-date to break above $21,000 for the first time since early November. The world’s largest digital asset saw a massive rally last week, surging 22%.
According to Morgan Stanley analysts, this rise was fueled by the liquidation of short BTC futures positions.
“Markets are watching to see if bitcoin can sustain a move higher into a new trading range or if this rally has simply allowed struggling crypto companies to liquidate more of their holdings,” they wrote in a note. customer.
Crypto analysts note that the ongoing bear market has so far followed a similar trajectory to that of 2017/18.
“BTC’s rally was quick and driven more by technicals than a fundamental shift in market participants’ view. Trading volumes are low, and institutional activity is unlikely to resume unless that BTC is trading at a materially higher level,” they added.
Finally, analysts strongly recommend to pay attention to the technical levels of $22,770 and $25,200 on the upside, as well as the $15,500 on the downside.