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Bitcoin reached a daily peak of $66,482, with a target of $69,000.
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The rise in BTC prices is largely due to the strong liquidation of shorts.
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Recent calls for Bitcoin to be valued at $70,000 has also skyrocketed.
Bitcoin (BTC), which reached a daily peak of $66,482, surged up to $65,000. The cryptocurrency has hit the resistance zone. An uptrend will be confirmed when BTC’s price remains above $66,000.
Santiment, an analysis platform for blockchains, noted that this is the first time Bitcoin has broken through the $66,000 price mark since September 27th. This surge in BTC is largely due to the liquidation of shorts over the past 24 hours. Santiment explained:
“As traders who were short positions were forced out (either by margin calls or voluntarily) it resulted a rapid increase in price, igniting even more upward momentum.”
Also, Bitcoin trading volume reached a two-week high as BTC started its surge at 15:35 UTC on Monday. It is important to note the fact that DeFi Liquidations for Bitcoin experienced their second-highest spike since over three months in this cycle.
Santiment noted that when massive DeFi liquidations were seen in the past, Bitcoin experienced a 20-day price rally of +29%. The blockchain analysis platform believes another strong rally is coming because historically, massive DeFi liquidity has led to higher prices for Bitcoin.
Bitcoin at $70,000?
On Monday, predictions that Bitcoin would reach $70,000 or more rose to their highest level since August. This suggests that investors expect a breakout in the leading digital asset, as trading volume soars.
According to CoinMarketCap Bitcoin is currently trading at $65,299 – up 2.5% over the last 24 hours. Over the last week, the market leader, BTC, has grown by around 4.6%. However, BTC is still 11.46% below its all-time high, which was $73,750 in January of this year, following the approval spot Bitcoin exchange-traded fund (ETFs).
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