The price of Bitcoin has recently hit a six-week high and stood at $75,937 on March 17, as more than $330 million in short positions were liquidated in the last 24 hours.
The price skyrocketed to touch an intraday high of $75,937 on Tuesday, and meanwhile, it broke over the $75,000 resistance for the first time since early February. The shift over the prominent psychological level initiated a market-wide rally, having altcoins like MemeCore, FET and Zcash in leading positions with double-digit rallies on the same day.
The increase in the price resulted in large-scale liquidations in overleveraged crypto markets. As per the data released by CoinGlass, around $498 million was liquidated, having more than $330 million coming from short positions as traders shut bearish positions opened in the early February market sell-off.
The Other Reason
Talking about Bitcoin, it alone stood for $118 million of those short liquidations. One more prominent reason behind today’s rebound can be attributed to consistent inflows into spot Bitcoin ETFs, indicating strong institutional demand.
Data from SoSoValue reveals that the 12 U.S. spot Bitcoin ETFs drew in more than $200 million in the last day, stretching their inflow streak to 6 straight days that drew in about $1 billion in total.
Investors are also looking at Bitcoin as a safe-haven asset at the time of geopolitical tension in the Middle East, mainly since traditional safe-haven assets like gold and silver have shown relative weakness in the past few days.
Currently, the upcoming prominent resistance level that traders are expecting sits at $79,000, witnessed in February, and lines up with the 50% Fibonacci retracement level. A sharp breakout from this level could take the price to as high as $89,850.
On the other side, if it is not able to hold $72,000, then it could result in retesting to lower levels.
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