Bitcoin (BTC) continued its impressive comeback on January 14, when it appeared at $21,000 for the first time since early November.
Bitcoin is breaking the major trend line for the first time since $69,000
Data from Cointelegraph Markets Pro and TradingView followed the BTC/USD pair, reaching highs of $21,247 on Bitstamp overnight.
The pair faced major uncertainties after it started to recoup lost gains during the week, with analysts warning of a possible pullback at any time.
However, Bitcoin’s rally has only been accompanied by short periods of consolidation, with weekly gains of close to 25%.
In doing so, the BTC/USD pair reached its price realization of $19,700, the previous all-time high from 2017, $20,000 and the 200-day moving average. The latter saw its first resistance/support challenge since October 2021, a month before Bitcoin’s last all-time high.
“Similar to ETH, BTC is gaining traction,” the on-chain analytics resource Material Indicators reported notice About Bitcoin starting to follow the strength of Ether (ETH) on short timeframes.
One of the tweets added that price action “has breached critical resistance at the 200-day moving average and 2017 (BTC) high/2018 (ETH) high.”
“Fasten your seat belts for the swings!” Completed material indicators.
“Two days left, but the btc weekly candlestick is solid, breaking very important trend lines and the downside momentum is still strong,” meanwhile summed up the famous trader Bluntz on the upcoming close of the weekly chart.
Fellow trader and analyst Rekt Capital went further, drawing comparisons to the 2019 event that launched a full-fledged bitcoin bull market after the previous cycle’s total halving in December 2018.
“The current BTC weekly candlestick is very close to matching the April 2019 weekly candlestick which confirmed a new bull market for BTC,” it captioned along with the chart.
Bitcoin short selling is at an 18-month high
Amid the now rare bull run, bitcoin has caused great pain for bears, clearing hundreds of millions of dollars of short positions. Nearly $300 million in short sales.
Including cryptocurrencies, liquidations totaled nearly $775 million over the same three-day period.
Commenting on futures short liquidations, Dylan LeClair, senior analyst at UTXO Management, noted that they have reached daily highs since mid-2021.
“July of 2021 saw Binance’s USDT-denominated futures drop very low on BTC come to fruition, arm themselves and one leg to do so” he explained:
“Liquidating USD short positions is the opposite effect of unbundling crypto-denominated long positions. Summer fund set at 30k on the day of the new FTX hike.
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