Bitcoin has gained over 5% in the last 24 hours. The flagship crypto-asset strolled from $20,000 to $21,500. This price movement has produced a few green candles, something that has been scarce in the last three months. Will this move mark a reversal or are Bitcoin whales trying to squeeze short traders?
Bitcoin’s Price Analysis
The bullish movement of Bitcoin has forced non-organic market buys in the past day. Blockchain data from Cryptoquant reveals that the short squeeze has led to the liquidation of $60 million worth of crypto assets.
Typically, swift bullish moves in a bearish market are executed by market movers to liquidate opposing traders. In this case, the short traders have collectively lost $60 million to the market within a short time frame. The liquidation of multiple short positions has opened buy orders for BTC.
Notably, for the momentum to continue, Bitcoin will need to accumulate buy volumes in the spot and futures market. The slight bullish move does not invalidate the market’s bearish structure. Until significant supply levels are broken, technical traders will exercise caution while opening long trades.
On the fundamental side, Bitcoin has gone past the level of its fundamentals and utility being questioned. Although, several high-profiled individuals like Peter Schiff and Warren Buffet are still skeptics. Their skepticism has in no way hindered the growth of Bitcoin and other crypto-assets over the years. As it stands, Bitcoin has more influential supporters than opposers.
Bitcoin’s projected scarcity and limited supply have also been the leading reasons for its high valuation. While Bitcoin sits around $21K at the moment, many Bitcoin holders strongly believe the asset will hit the $100K mark in the near future. With a total supply of 21 million, and over 19 million BTC already in circulation, Bitcoin looks set to become even more valuable in the coming years.
