- Bitcoin price showed explosive growth this week as it climbed 13%.
- Ethereum price followed BTC’s lead and inflated 11% in the week.
- This sudden move has caught roughly $200 million worth of traders’ positions off-guard.
Bitcoin (BTC) and Ethereum (ETH) saw a massive spike in interest after the United States inflation number was announced on February 14. The hotter-than-forecast expectations were snuffed out, indicating that disinflation is the key narrative. Combined with the Federal Reserve’s dovish take in the February policy meeting, it was a catalyst that kick-started this explosive rally.
Also read: Bitcoin Price Forecast: US CPI shows inflation declining
Bitcoin contributes to $60 million in liquidations
Bitcoin price rallied 13% since January 13 and is currently testing the 200-week Simple Moving Average (SMA) at $25,014.
BTC’s explosive move has caused roughly $54 million in short positions to get rekt and, surprisingly, $4.56 million in long positions as well.
BTC liquidations
Ethereum price remained a beta asset as it followed BTC’s path and clocked an 11% gain. Despite a lower performance, Ether wiped off $40 million in liquidations, with $36 million belonging to the bears.
ETH liquidations
Altcoins were dominating this 2023 rally even during the brief period of correction that Bitcoin underwent in the first week of February. There was a lot of money riding the altcoin wave, evident from the performance of certain coins that more than tripled in just a few days.
Looking at the overall market, it shows that $200 million worth of positions were wiped off in the last 24 hours. Just looking at February 15 liquidation data shows that $154 million worth of shorts and $14 million longs were caught off guard.
Total liquidations
What’s next for cryptos?
Bitcoin price is currently testing the 200-week SMA at $25,014, which closely coincides with the $25,000 psychological level. The Momentum Reversal Indicator’s (MRI) resistance level lies at $25,207.
BTC/USDT 1-week chart
This level is critical in determining the fate of this ongoing bull run. Overcome this resistance confluence and Bitcoin price could easily tag the $30,000 psychological level. If such a situation were to play out, the crypto market would flip extremely bullish and would likely cause many altcoins to recover above the pre-FTX crash levels seen in May 2022.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto traders brace for short-term volatility with $2.4 billion options expiry on Friday
Bitcoin and Ethereum options market looks bullish on Friday, according to data from intelligence tracker Greeks.live. The firm said it has identified two Bitcoin calls that show an underlying bullish sentiment among market participants.
XRP recovers from week-long decline following Ripple’s response to SEC motion
Ripple filed a letter to the court to support its April 22 motion to strike new expert materials. The legal clash concerns whether SEC accountant Andrea Fox's testimony should be treated as a summary or expert witness.
Lido adds 4% gains as protocol rolls out first step towards decentralization
Lido takes the first batch of simple DVT validators to live, a step taken to decentralize the protocol. Lido leveraged technology to expand the protocol to multiple node operators, inviting both solo and community stakers.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.