Tag: Bulls

$150 Million In  Short Squeeze Liquidated As Bitcoin Scales Above $53,000

by NEWSBTC

On Monday, Bitcoin surged above $53,000. At 13:15 GMT, the coin was exchanging hands at $53,324, a 7.07% increase over the last 24 hours.

However, about $150 million worth of shorts were liquidated within a few hours as bulls returned to take a firm grip over the market. The cryptocurrency rose from $47,000 to over $53,000 as the short squeeze occurred following a fall to the bear market late last week.

Other cryptocurrencies like ETH, BNB, also experienced short squeeze as they rose by around 15%. As Bitcoin recovered by 12% within a single day, it appears the futures market is completely reset.

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Bitcoin Short Squeeze Is Bullish

A short squeeze refers to when short-sell orders in the futures market are liquidated in a short period of time. When the shorts are liquidated, short sellers will have to buy back their positions. This automatically causes buyer demand to increase in the market.

Hence, the number of shorts rapidly declines, and long contracts or buy orders begin to dominate the market.

Related article | Cuban Expects Number of Bitcoin Hodlers to Double, But Ban Fears Still Linger

In the case of Bitcoin in the last 24 hours, despite BTC’s strong rally back up, the funding rate has remained relatively low. According to Bybt.com, the funding rate across major exchanges for Bitcoin is below 0.01%, which is below the neutral rate.

At the current rate, there are still more longs in the futures market, which could push the price to go higher.

Lex Moskovski, the CIO at Moskovski Capital, said:

“~$150M of #Bitcoin shorts liquidated on this brief move up. Nothing smells better than roasted bears in the morning.”

Sentiment From Traders Show Bullish Expectations

In the near term, many traders are optimistic that the $55,000 price level is an important one to reclaim for the chance of Bitcoin reaching its previous ATH.

Johnny, a cryptocurrency derivatives trader, said:

“Swept the lows and now we have a very strong bounce. We are not out of the woods yet. Reclaim $55,500 and than we can talk about new ATH. For now, play it level by level. Strong reaction so far.”

Another trader, Adnan Van Dal, noted that if the price of BTC doesn’t drop until the US market opens, the chance of the price going higher is highly probable. He wrote on Twitter:

“If $BTC can make it to the US open (EUR am Man shrugging) think cud be ok for a bit. Durable goods orders at open, actual data’s been good, SPX near ATH post useful Friday profit taking & started firm. Think helps – coincident SPX / $BTC weakness a thing this year. TSLA wildcard later tho.”

As it stands, it appears that the bulls are back. The bears’ grip on the market has been short-lived. Currently, the price is aiming for a recovery above $55,000 and the likelihood that the benchmark cryptocurrency will hit a new all-time high soon cannot be ignored.

Related article | Bitcoin Makes Comeback, Here’s Why $53.5K Holds The Key

Featured image from Pixabay, Charts from Tradingview.com

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Experts divided on BTC predictions: Bullish or super bullish?

by Cointelegraph

Despite the current battle between Bitcoin bulls and bears around the $50,000 price mark — and an 8.7% pullback over the past 24 hours — a raft of analysts and commentators have got out their crystal balls to tip a glittering future for Bitcoin prices.

On Mar. 4, Senior Commodity Strategist for Bloomberg Intelligence Mike McGlone pointed to historical data to suggest that Bitcoin is on the way to $100,000.

McGlone’s logic revolves around the growing discount for shares in the Grayscale Bitcoin Trust which is at the same level as last year’s Black Thursday collapse. The discount refers to when shares in the Grayscale Bitcoin Trust trade for less than the value of the underlying Bitcoin (normally they trade at a premium).

Looking at historical data, said that

Twitter user “Lee Hendricks” wasn’t convinced, suggesting the catalyst for Grayscale’s discount could be the result of pressure from upcoming ETFs and other crypto funds. (Although that’s arguably bullish too.)

The Bloomberg strategist isn’t the only expert with high expectations for BTC, with influencer and YouTuber Lark Davis stating on Mar. 4 that “we are just now past the first major price wave,” with two more, larger waves to come.

On March 2, technical analyst Kaleo posted a chart predicting BTC will hit $100,000 near the start of April this year.

It’s a follow-up on his “Bitcoin Halving Reward Era Price” analysis chart two years ago predicting the price would reach $200,000 around mid-2021. He tweeted two weeks ago that he still has faith in it:

“It is by far the most accurate, long-term chart prediction I’ve ever seen for Bitcoin… 


$BTC will hit $200K+ this cycle.”

Another analyst who goes by the Twitter name MasterChangz, told his 10,000 followers he believes Bitcoin will hit the $200,000 mark even earlier than mid-2021, potentially at the start of April. The next rise, he said, is to $77,000 over the next two weeks.

Other predictions are even bolder with Kraken CEO Jesse Powell stating the cryptocurrency could reach $1 million or even “infinity” in a Bloomberg television interview on Mar. 4, adding that it will eventually become the world’s currency.

“We can only speculate, but when you measure it in terms of dollars, you have to think it’s going to infinity,” he said. “The true believers will tell you that it’s going all the way to the moon, to Mars and eventually, will be the world’s currency.”

Kraken Head of Growth Dan Held, echoed this prediction on Mar. 5, claiming on Twitter that:

“Bitcoin is more likely to hit $1,000,000 than $0.”

Even past Bitcoin skeptics are becoming crypto converts with investment firm Sanders Morris Harris CEO George Ball admitting to Yahoo Finance on Mar. 4 that he believes cryptocurrencies are now “attractive” as a “small part” of any portfolio.

“With the cryptocurrencies, I think there is a fundamental hydra-headed shift that makes them attractive as a part, a small part, of almost any portfolio,” Ball said.

Despite this wave of optimism, history also suggests March could be a bloody month, with Bitcoin’s price falling across the month in six of the past nine years by an average of 5.8%. The most recent of these occurred last year on Black Thursday when the price plunged by 50%. That said, the second-biggest monthly candle in BTC history happened in March 2013, when the price shot up 179%.