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bitcoin is on the brink of a historic move as it marches towards all-time highs, surpassing the $71,000 mark just yesterday. This breakout has ignited optimism among analysts, who expect further gains in the coming weeks as the US elections approach, a period historically marked by increased volatility and market swings.
Critical data from CryptoQuant indicates that open interest has reached $22.6 billion, and half of these positions are held by bears. If bitcoin continues to rise, this setup creates a high risk of short liquidations, which could accelerate buying pressure as prices surpass $71,000.
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As momentum builds, the next few days will determine whether btc can maintain its uptrend or continue a consolidation phase below the all-time high. Investors are closely monitoring these price levels as a confirmed breakout could signal new highs for bitcoin. At the same time, a stagnation could suggest the need for additional consolidation before a larger move.
bitcoin bears are in serious trouble
bitcoin bears are now at high risk of forced liquidations as a significant level of short position liquidity sits above the $71,000 threshold. According to top analyst and macro investor Axel Adler, this scenario could trigger a powerful rally if short positions begin to be liquidated en masse. Creating momentum that pushes btc past its all-time highs. Adler x.com/AxelAdlerJr/status/1851171248895598612″ target=”_blank” rel=”nofollow”>shared a CryptoQuant chart on xpointing out that bitcoin open interest has risen to $22.6 billion, and half of these positions are held by bears.
In his analysis, Adler emphasizes that the current market structure is prepared to undergo a significant contraction. “There is no need to hesitate to liquidate short positions to drive the price higher,” says Adler, suggesting that a cascade of liquidations above $71,000 could act as a launching pad for bitcoin, taking it to unexplored levels of price discovery. This process, known as a “short squeeze,” occurs when holders of overleveraged short positions are forced to close their positions, generating large buy orders that drive prices even higher.
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If this scenario plays out, bitcoin would not be the only one to benefit. As btc leads the market, a rally that surpasses previous highs could signal a new cycle for the entire crypto space. Altcoins often follow bitcoin's lead, and the spillover effect could fuel a comprehensive bull run, with new highs across multiple assets.
Investors are watching closely as such a move could renew interest and investment in the cryptocurrency market, attracting retail and institutional capital. With btc on the brink of price discovery, the next few days may prove pivotal in shaping the direction of the market.
Crucial btc Proof Supply
bitcoin is testing a supply zone at $71,200, grazing the last resistance level before hitting its all-time high. The bulls appear to be firmly in control, and the price action indicates a likely break above this level in the coming days. Breaking and staying above the $70,000 mark remains critical. This psychologically significant level reinforces the bullish sentiment, encouraging more buyers to enter the market.
However, a temporary pullback to gather liquidity at lower demand levels would benefit bitcoin's uptrend. A drop towards the $69,000 level, or even as high as $66,500, would still align with a bullish outlook. It could attract more interest and create a stronger foundation for the next rally. These areas would allow bitcoin to gather liquidity before making a stronger push towards new highs.
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Traders are watching, knowing that a sustained move above $71,200 could pave the way for price discovery beyond all-time highs. A successful breakout could trigger renewed momentum across the market, sparking a broader bull run as bitcoin leads the charge.
Featured image of Dall-E, TradingView chart
