$800M Liquidated As BTC Rises Over 5% – Breaks $20K
Bitcoin (BTC) has pumped almost 5%, while Ethereum (ETH) pumped almost 10% in the last 24 hours. This resulted in $800 million worth of shorts being liquidated.
The overall crypto market capitalization was pumped by almost 5%. This has resulted in a short squeeze worth over $800 million, according to data from Coinglass. The pump liquidated over 100,000 traders in 24 hours. The largest single liquidation order occurred on the Okex exchange in ETH-USDT-SWAP worth $3.05 million.
The overall market capitalization of crypto
During a 4-hour time frame, the total crypto market capitalization formed a head and shoulder inversion. It broke the neck of 901.6 billion and increased to 944 billion. A trillion dollar mark will be a huge psychological resistance.
Bitcoin price action
BTC showed similar price actions to the overall crypto market cap chart. During a 4-hour time frame, it broke out of an inverse head and shoulders. Volumes during the breakout were more than three times the average of the last 50 candles. This may indicate that the whales bought in significant quantities.
On a daily time frame, BTC is trading significantly above the 50-day Simple Moving Average (SMA) after almost 45 days. The price has been consolidating from $18,500 to $20,300 for over a month. However, BTC is forming a potential double bottom, as shown in the chart below. A breakout above the $20,300 zone supported by volume would be considered bullish.
A daily close above $21,000 is needed to sustain the pump because this is the area of solid resistance. The price rally may slow down with the resistance from the 100-day SMA and 20-week SMA falling in the area. A daily candle above these SMAs could push the price to the 23,000+ area.
The BTC community means itfinally there is enough volume to push the price in one direction after weeks of super low volatility.
ETH price action
During a 1-hour time frame, ETH formed a Volatility Contraction Pattern (VCP) before breaking out of the neck at 1351. Volumes shrank quite significantly before the breakout, making the base strong. After the breakout, ETH pumped more than 10% within hours.
In a daily time frame, ETH consolidated between 1265 and 1382 for more than a month. It closed above this range with volumes more than double the average over the past 50 days.
But the price of ETH seems to be rejected from the 100-day SMA. A close above the 100-day SMA is crucial for the rally to be sustained. The crypto trader would suggest avoid FOMO purchases.
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For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
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