Bitcoin price climbs above $42,000 as $183 trillion in shorts liquidated
- Bitcoin price posted 10% gains over the past day amidst short liquidations across exchanges.
- Short positions in Bitcoin were among the most liquidated, followed by Ethereum, within the past 24 hours.
- Analysts argue that the Bitcoin price has bounced from the bottom of ascending range bound activity, presenting a bullish outlook.
Bitcoin price posted double-digit gains recovering from the crypto market bloodshed, climbing ahead of $42,000. Several short positions in the asset were liquidated as Bitcoin recovered from the massive drop.
Bitcoin recovery liquidates several short positions
Bitcoin price’s remarkable comeback has pushed above $42,000 liquidating $183 million short positions in the process. Crypto traders suffered significant losses as the asset posted double-digit gains overnight.
Bitcoin witnessed a 10% price rally, fueling a bullish narrative among investors. The asset's comeback occured amidst rising geopolitical tensions and against the backdrop of the Russo-Ukraine war.
Bitcoin short positions were among the highest liquidated ones across crypto exchanges, followed by the largest altcoin Ethereum.
A key indicator of Bitcoin price trend is the amount of supply last moved over the past year. Based on data from crypto intelligence platform Glassnode, the amount of supply that remained stagnant for over a year has hit near all-time high.
This is considered key to the asset's trend reversal.
Analysts evaluated the Bitcoin price trend and presented a bullish outlook. @Koolaid_crypto, a crypto analyst believes that Bitcoin has broken out of the descending broadening wedge and the first target is the 0.618 fibonacci resistance level.
Analysts believe there could be a small retracement before the next leg up for Bitcoin.
$BTC broke out of this descending broadening wedge like i talked about yesterday and is currently at my 1st target just underneath the 0.618 fib resistance. A small retrace could be expected here before the next leg up.#BTC #BTCusdt #Bitcoin #cryptofam https://t.co/CgP6BtG9kl pic.twitter.com/WJy6QkcMhj
— Crypto Koolaid (@Koolaid_crypto) March 9, 2022
FXStreet analysts believe that downside risks will persist despite the rebound in Bitcoin price.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
