Even for a market known for its extreme fluctuations, what happened to Bitcoin (BTC) today was extraordinary and astonishing. The price of Bitcoin surged, but the main story was not in the green candles but behind the scenes with liquidations. In a 12-hour period, nearly $15 million worth of BTC trading positions were liquidated, with an unusual twist that only about $600,000 of it belonged to long positions, and over $14 million was from short positions. This resulted in a staggering liquidation ratio of over 2131%; a massive short squeeze that caught the bears off guard. Bitcoin, after three unsuccessful attempts in January, February, and March, finally managed to break free from its short-term downtrend and is currently trading around $84,700. However, analysts warn of a possible price correction. The TD Sequential indicator on the 1-hour and 4-hour timeframes has issued a sell signal, and some analysts like Ali Martinez believe a price correction is imminent. From a technical standpoint, the $82,024 level, where over 96,000 Bitcoins have accumulated, now acts as the first line of defense against price declines. If this level is breached, the next support is around $79,000. Nevertheless, in the absence of negative external factors, the likelihood of dropping below $80,000 is assessed. On the flip side, there are signs indicating a possible continuation of the upward trend. Bitcoin managed to close above the 50-day moving average for the first time since early February, an event that, if sustained, could pave the way to reclaim the key resistance at $99,500. In general, as long as market sentiment remains bullish, traders may consider taking profits on minor upticks and prevent the formation of strong upward waves. On the momentary price page of digital currencies, you can observe the prices of all tokens and cryptocurrencies live and in real-time.
