As Bitcoin Soars to $107K, Can the Bull Run Continue?
Exploring Factors and Resistance Impacting Bitcoin's Bullish Surge Beyond $100K
Key Points
- Bitcoin recorded its largest short liquidation of the year, preceding a market rally.
- Despite high liquidity inflow, Bitcoin could face significant outflows due to overbought market conditions.
Bitcoin has shown strong bullish tendencies, with a 3.19% rise in the past 24 hours, setting a new weekly high of $107,106. This indicates the potential for Bitcoin to reach a new all-time high, bolstered by liquidity inflows from market investors. However, the asset is facing a significant challenge.
Largest Short Liquidation on Record
In the past 24 hours, Bitcoin on Binance experienced its largest short liquidation yet. Short liquidation is a process that forcibly closes the positions of traders betting on a price decline when the price trades higher. This event was triggered by Bitcoin’s sharp rise from $103,195 to $105,535, a 3.48% increase. This resulted in short traders losing $66.3 million within this period.
Short liquidation often paves the way for further market rallies as it suggests potential new capital inflow into the market. The liquidity inflow into the market is believed to have come from traditional institutions investing in Bitcoin. According to a recent report, 10 Bitcoin spot exchange-traded funds (ETFs) saw a combined net inflow of 2,103 Bitcoins, valued at $210.67 million.
Potential Hurdles Ahead
While Bitcoin is showing upward momentum, not all market sentiments align with this trend. The Binary Coin Days Destroyed (CDD), a metric tracking when investors last moved their Bitcoin to determine whether they’re selling or buying, suggests the former. The CDD currently reads 1, implying that investors might be moving their tokens to sell.
Further analysis indicates that investors are likely moving their Bitcoin because new market data suggests it is overbought. An asset is considered overbought when its current market price significantly exceeds its intrinsic value. After reaching this level, the asset typically trends lower. This information suggests that investors are likely capitalizing on their profits to avoid future losses, allowing them to re-enter at a more favorable level ahead of another rally.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
New spot margin trading pair — HOLO/USDT!
FUN drops by 32.34% within 24 hours as it faces a steep short-term downturn
- FUN plunged 32.34% in 24 hours to $0.008938, marking a 541.8% monthly loss amid prolonged bearish trends. - Technical breakdowns, elevated selling pressure, and forced liquidations highlight deteriorating market sentiment and risk-off behavior. - Analysts identify key support below $0.0080 as critical, with bearish momentum confirmed by RSI (<30) and MACD indicators. - A trend-following backtest strategy proposes short positions based on technical signals to capitalize on extended downward trajectories.

OPEN has dropped by 189.51% within 24 hours during a significant market pullback
- OPEN's price plummeted 189.51% in 24 hours to $0.8907, marking its largest intraday decline in history. - The token fell 3793.63% over 7 days, matching identical monthly and yearly declines, signaling severe bearish momentum. - Technical analysts cite broken support levels and lack of bullish catalysts as key drivers of the sustained sell-off. - Absence of stabilizing volume or reversal patterns leaves the market vulnerable to further downward pressure.

New spot margin trading pair — LINEA/USDT!
Trending news
MoreCrypto prices
More








