The bitcoin (BTC) price returned to $28,000 on March 29, when a classic short squeeze pushed the market to a five-day high.
BTC liquidations rise as bitcoin overcomes Binance’s dip
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair hit $28,159 on Bitstamp.
The abrupt rally came courtesy of exchanges, where a band of shorts was “blown up” to remove resistance and allow a return to higher levels.
According to Analyst Skew, these shorts were left over from previous bitcoin movements and were worth around 1,500 BTC.
“Looks like the previous bounce was very short and those shorts just flew,” part of the comment read.
According to the analytical resource Coinglass, total BTC short liquidations for March 29 amounted to almost $20 million at the time of writing this article.
The monitoring resource Material Indicators noted additional changes to the Binance spot order book.
In anticipation of the US macroeconomic data release on March 31, Traders seemed to be preparing for potential buying opportunities should the downtrend re-enter.
“Meanwhile, the price is pumping. If the bulls run out of momentum before clearing $28,000, things could get spicy,” the comments acknowledged.
#FireCharts shows ~$25M in #Bitcoin Bid liquidity that was stacked above the 200 Week MA, was moved down to ~$23.3k, presumably to defend the Monthly Close coming Friday after a fresh PCE report.
Meanwhile price is pumping.
If bulls run out of momentum before clearing $28k,… pic.twitter.com/oZpQPdql12
— Material Indicators (@MI_Algos) March 29, 2023
#FireCharts shows that roughly $25M in bitcoin supply liquidity stacked above the 200-week MA, moved down to ~$23,300, presumably to defend the Monthly Close next Friday after a new PCE report. Meanwhile the price is pumping. If the bulls run out of momentum before clearing $28,000…
Bitcoin faces “serious demand for liquidity” before reaching the $30,000 level
The BTC price action erased any trace of losses generated by the news that the largest cryptocurrency exchange Binance was in the crosshairs of US regulators.
Previously, Consensus favored a return to test lower support levels for BTC/USD, mainly focusing on the 200-week moving average around $25,500.
Skew, for his part, acknowledged that for the short-term upside to continue, the bulls would need to muster some serious buying power.
“Sizable market buying would be required to break above level,” He said another tweet.
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