• Bitcoin’s price broke above $22,500 to new highs above $25,000 due to short liquidations of over $155 million.
• According to analysts at crypto exchange Bitfinex, the retreat to this week’s lows comes after a 10% upswing and a green weekly candle.
• Profit-taking in the wake of the recent rally and a stop-run on those who had gotten overly aggressive chasing the upside might well send Bitcoin back below $24,000 in the week ahead.
Bitcoin Breaks Above $25k
Bitcoin price recently broke above $22,500 to new highs above $25,000 amid the hunt for short stops and liquidations. The move resulted from short liquidations of over $155 million.
Price Retreat Could Be Indicative Of A Bottom
Bitfinex analysts say that recent price movements could be indicative of a bottom. Bitcoin’s breakout from the $22,500 price level was fueled by massive liquidations recorded over the past few days.
What Could Lie Ahead?
Commenting on BTC outlook and what could lie ahead in coming weeks, analysts said that profit-taking in the wake of the recent rally and a stop-run on those who had gotten overly aggressive chasing the upside might well send Bitcoin back below $24,000 in the week ahead. Most likely move going forward is ranged price movement due to action that has seen both longs and shorts wiped off simultaneously.
Short Liquidations Could Push Price Upward
The push upward could be fueled by further short liquidations as it has been doing lately. Bitfinex analysts suggest that this is an indication that we are seeing „the latter stages of a gruesome bear market.“
Risk Of Further Pullback
However there is still risk of further pullback since Bitcoin did not hit a crucial daily candle close at that zone yet. It remains uncertain if or when BTC will reach its all time high again but speculators should remain aware of potential risks while keeping an eye out for any possible opportunities presented by market movements in either direction