Bitcoin (BTC) surged to a daily high of $66,482 earlier today, crossing the $65,000 price mark for the first time since September 27. The cryptocurrency briefly entered the resistance zone, and an uptrend could be confirmed if it continues to hold above $66,000.
According to blockchain analytics platform Santiment, this price movement was driven by a large-scale liquidation of short positions in the past 24 hours. The traders felt the pressure of closing their short positions for either self-inflicted or margin pressure caused the price of Bitcoin to surge upwards. The price increase was also accompanied by an increase in trading volume, which trading volume reached its highest level in the last two weeks.
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DeFi Liquidations Fuel Momentum
During this recent Bitcoin price surge, DeFi liquidations for the token hit their second-highest level in over three months. Santiment noted that they are followed closely – often within days or weeks – by a vibrant bullish run in the crypto market. The platform recalled that such liquidation activity resulted in a 29% rally over 20 days in Bitcoin.
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As a result, speculation that Bitcoin could soon break through the $70,000 mark is growing. Analysts suggest that the increased trading volume and heightened liquidation activity may set the stage for another significant upward move.
Indeed, other than the liquidation level activity, this current price level has revived hope for investors following the approval of spot Bitcoin ETFs in the United States. Market participants think this could push the cryptocurrency toward its record high of $73,750 in January this year.
Conclusion
At the time of writing, Bitcoin traded at $65,618, up 3% in the past 24 hours and showing a 5.13% gain over the past week. While still 11.46% below its January peak, the current momentum and market conditions suggest that further price increases are possible soon. Investors closely monitor whether Bitcoin will maintain its position above the $66,000 resistance level.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.