Cryptocurrency Market Update

The cryptocurrency market has witnessed $118 million in liquidations within the last day, primarily targeting bearish traders. Bitcoin and Ethereum led the way, with Bitcoin experiencing over $68 million in liquidations, as indicated by the liquidation heatmap.

Approximately 88% of liquidations were attributed to short traders, signaling a massive shakeout of short positions and placing significant pressure on bears. Binance and HTX had the highest liquidations, with HTX exhibiting a remarkable 98% short liquidation rate, strongly favoring shorts. This trend demonstrates robust bullish momentum, catching bears off guard as Bitcoin's price surged back above $64,000.

Recent chart analysis of Bitcoin reveals its breach of a notable resistance level at $62,000 and its approach toward the crucial threshold of $64,500, a psychological barrier. If Bitcoin can sustain this momentum, $68,000 will emerge as the next significant target.

Traders should remain cautious, however, as a potential pullback could arise if $64,500 is not decisively surpassed, possibly retesting support around $61,000. Further inspection shows that futures open interest has sharply declined, especially on Binance futures, where nearly 4,000 BTC in open interest disappeared.

This suggests that bearish traders are feeling the squeeze and undergoing a liquidation of over-leveraged positions. The heatmap indicates that this liquidation event is part of a broader trend, as various assets, including SUI and SOL, have also experienced similar liquidations.

The liquidation sweep reflects a healthy shakeout of short positions, increasing the likelihood of another bullish rally. Investors should monitor crucial resistance levels, particularly the $64,500 range for Bitcoin. A clear break could lead to more significant gains across the cryptocurrency market, with Bitcoin leading the charge.

> This article was originally published on U.Today