Bitcoin (BTC) continued with a surprising comeback on January 14 when $21,000 appeared for the first time since early November.
Bitcoin breaks the key trend line for the first time since $69K
Data from Cointelegraph Markets Pro and TradingView It followed BTC/USD as it reached highs of $21,247 on Bitstamp overnight.
The pair had faced great suspicion after it started to recoup lost ground over the week, with analysts warning that a reversal could strike at any time.
However, only brief periods of consolidation accompanied Bitcoin’s rise, with weekly gains of nearly 25%.
In doing so, BTC/USD pulled its realized price to $19,700, the 2017 all-time high, $20,000, and the 200-day moving average. The latter saw its first resistance/support challenge since October 2021, a month before Bitcoin’s most recent all-time high.
“Like ETH, BTC is Gaining Momentum”, On-Chain Analysis Resources Material Indicators indicated on Bitcoin beginning to copy the strength of Ether (ETH) in short periods of time.
A Twitter post added that the price action “has broken above critical resistance at the 200-day moving average and 2017 high (BTC) / 2018 high (ETH).”
“Buckle up for volatility!” Material indicators completed.
“2 days to go but this btc weekly candle is a solid AF breaking very key trend lines and low time frame momentum remains strong,” meanwhile, popular trader Bluntz summarized on the next close of the weekly chart.
Trader and analyst Rekt Capital went further, drawing comparisons to a 2019 event that kicked off a full 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 that confirmed a new BTC bull market,” he said. commented next to a graph.
Bitcoin Short Liquidations Set 18-Month Record
Amid the now rare upside, Bitcoin unleashed a major pain for the bears, liquidating hundreds of millions of dollars in short positions.
Related: Bitcoin Gained 300% in the Year Before the Last Halving: Is 2023 Any Different?
According to pursethese totaled about $125 million for January 14 alone, and the period from January 11 onward brought nearly $300 million of short liquidations.
Including altcoins, liquidations totaled nearly $775 million over the same three-day period.
Commenting on the futures short selloffs, Dylan LeClair, a senior analyst at UTXO Management, noted that these hit their highest daily levels since mid-2021.
“In July 2021, Binance’s USDT-denominated futures went extremely short on BTC and called and armed to do so,” he said. explained.
“USD-denominated shorts getting liq’d is the opposite effect of crypto-denominated longs getting liq’d. The 30k summer low was set on the day of FTX’s new rally.”
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