Bitcoin Price Jumps Above $28K After 1.5K BTC Shorts ‘Blow Out’
Bitcoin (BTC) returned to $28,000 on March 29 as a classic short squeeze took the market to five-day highs.
BTC liquidations increase as Bitcoin reverses Binance dip
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD hit $28,159 on Bitstamp.
The sharp rise came thanks to exchanges, where a band of shorts was “blown out” to remove resistance and allow higher levels to return.
As noted by analyst, Skew, these shorts were left over from Bitcoin’s previous move and were worth around 1500 BTC.
“Looks like the previous bounce was shorted hard and those shorts just got blown out,” reads part of the accompanying commentary.
According to analytics resource Coinglass, total BTC card liquidations for March 29 totaled nearly $20 million at the time of writing.
Monitoring resource Material Indicators noted further changes in the Binance spot order book.
Related: US law enforcement agencies turn up the heat on crypto-related crime
“Meanwhile, prices are pumping. If the bulls run out of momentum before clearing $28k, things could get spicy,” comments acknowledged.
#FireCharts shows ~$25 million in #Bitcoin bid liquidity stacked above the 200-week MA was moved down to ~$23.3k, presumably to defend the month-end this coming Friday after a recent PCE report.
Meanwhile, the price is pumping.
If bulls run out of momentum before clearing $28k, … pic.twitter.com/oZpQPdql12
— Material Indicators (@MI_Algos) March 29, 2023
Bitcoin faces “serious demand liquidity” before $30,000
BTC price action thus effectively erased all traces of losses caused by the news that the largest crypto exchange, Binance, was targeted by US regulators.
Related: Bitcoin is 1 week away from ‘confirming’ new bull market – analyst
Earlier, the consensus favored a return to test lower support levels for BTC/USD, this mainly focused on the 200-week moving average around $25,500.
Skew, meanwhile, admitted that for short-term upside to continue, bulls need to muster serious buying power.
“Thick liquidity between $28,000 and $30,000 would need some significant market buying to come through here,” a further tweet read.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
