• Bitcoin price broke above $22,500 to new highs above $25,000 amid the hunt for short stops and liquidations.
• Bitfinex analysts suggest that Bitcoin’s breakout was fueled by massive liquidations of over $155 million.
• Analysts at Bitfinex predict that BTC could retreat back below $24,000 in the week ahead due to profit-taking and stop-runs on those chasing the upside.
Bitcoin Breaks Above $25k
Bitcoin price has broken through the key psychological and technical area of $25,000 after a 10% upswing and a green weekly candle. The move to this level was fueled by massive liquidations of over $155 million as traders hunted for short stops and liquidations.
Bitfinex Analysts Forecast Retreat Below 24K
Analysts at crypto exchange Bitfinex say that despite this recent break to all-time highs, the price action could be indicative of the latter stages of a gruesome bear market. They further suggest that profit-taking in the wake of this rally, as well as stop runs on those who chased the upside too aggressively may cause BTC to retreat back below $24,000 in the week ahead.
Price Could Retreat To 24K
Despite pushing beyond 25k briefly before slipping back under it again, Bitcoin did not manage to close with a critical daily candle at this level. Therefore there is still potential for BTC to retreat once more towards 24k before continuing its bullish run towards higher levels.
Longs And Shorts Simultaneously Wiped Out
The simultaneous wiping out of both longs and shorts is likely what has caused ranged price movement recently according to analysts at Bitfinex. This means we can expect a period of consolidation around current levels before further gains are made or losses start piling up again depending on how sentiment shifts in coming weeks.
Short Liquidations Of Over 155 Million USD
The surge beyond 25k was also fueled by large scale short liquidations which totaled over 155 million USD according to data from Bitfinex analysts . This suggests that many investors were caught off guard by this sudden uptrend and were forced into closing positions prematurely resulting in an influx of capital into Bitcoin’s market cap once again.
