5% jump of Bitcoin in 24 hours; What was the cause?
While some investors expected the value of Bitcoin to fall after a US regulatory body sued Binance, a classic market event caused the price of the digital currency to once again rise above the $28,000 level.
Liquidation of Bitcoin short trades and price increase
To Report Cointelegraph, market data shows that the price of Bitcoin rose to $28,650 on March 29 (Frudin 9).
The sudden jump in the price of Bitcoin was caused by exchanges; Where the short selling pressure caused Bitcoin to break through its resistance and once again reach the $28,300 range. Short selling pressure occurs when short (bearish) traders are forced to exit their trading positions due to a sudden rise in market prices.
The Skew account also noted on Twitter that these short positions were related to previous market moves and were worth around 1,500 bitcoins.
Askew said:
It seems that after the previous price jump, many short positions were opened, which are now all liquidated.
Based on website data Coinglassthe total value of short Bitcoin transactions that were liquidated in the last 24 hours is more than 38 million dollars.
A review of data from the Material Indicators website also shows more changes in the order book of the Binance spot market.
With inflation expected to decline ahead of the release of US economic data on March 31, traders seem to be preparing for potential buying opportunities if prices fall.
The Material Indicators page wrote on Twitter:
In a situation where the price is rising, the situation could change if the buyers’ funds are exhausted before the price reaches the $28,000 level.
Bitcoin needs liquidity to reach $30,000
Bitcoin’s price performance after the release of news of the US Commodity Futures Trading Commission’s complaint against Binance effectively wiped out all of its negative effects.
Earlier, analysts agreed on Bitcoin price falling to the support of the 200-week moving average, i.e. the $25,000 range.
However, Askew noted that buyers will need more buying power to sustain Bitcoin’s near-term uptrend.
Due to the large volume of sell orders between $28,000 and $30,000, Bitcoin needs significant buying volume to cross this range.