Bitcoin (BTC) returned to $28,000 on March 29 as a classic short tightening led the market to five-day highs.
BTC Liquidations Rise as Bitcoin Reverses Binance Crash
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD reached $28,159 on Bitstamp.
The abrupt rally came courtesy of trades, where a band of shorts was “blown” to remove resistance and allow higher levels to return.
As noted According to analyst Skew, these shorts were left over from Bitcoin’s previous moves and were worth around 1,500 BTC.
“Looks like the previous bounce got really short and those shorts just went off,” part of the attached comment read.
According Using the analytics resource Coinglass, total BTC liquidations for March 29 amounted to almost $20 million at the time of writing.
Monitoring resource material indicators noted additional changes to the Binance spot order book.
Related: US Enforcement Agencies Are Turning Up the Pressure on Crypto-Related Crimes
“Meanwhile, the price is going up. If the bulls run out of momentum before reaching $28,000, things could get spicy,” the comments acknowledged.
#FireCharts shows ~$25 million in #Bitcoin Bid liquidity accumulating above the 200-week moving average eased to ~$23,300, presumably to defend the monthly close next Friday after a new PCE report.
Meanwhile, the price is rising.
If the bulls run out of momentum before liquidating $28k,… pic.twitter.com/oZpQPdql12
— Material indicators (@MI_Algos) March 29, 2023
Bitcoin Faces “Serious Liquidity Demand” Before $30,000
The BTC price action effectively erased any trace of losses generated by the news that US regulators were attacking the largest cryptocurrency exchange, Binance.
Related: Bitcoin Is 1 Week Away From ‘Confirming’ A New Bull Market: Analyst
Previously, the consensus favored a return to test lower support levels for BTC/USD, focusing mainly on the 200-week moving average at around $25,500.
Meanwhile, Skew acknowledged that for the short-term rally to continue, bulls would need to muster some serious buying power.
“Thick demand liquidity between $28K and $30K would need sizeable market buying to move here,” another tweet. read.
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