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Bitcoin price blasts past $21K as 3-day short liquidations near $300M

In a crazy few days of continuous BTC price rises, Bitcoin blows off a crucial moving average that has been undisturbed since before its $69,000 all-time highs.

On January 14, Bitcoin BTC continued its amazing rebound, reaching $21,000 for the first time since early November.

Cointelegraph Markets Pro and TradingView data tracked BTC/USD as it reached highs of $21,247 on Bitstamp overnight.

Analysts warned that a regression might occur at any time after the pair began to make up some significant lost ground over the week.

Despite this, Bitcoin’s ascension has been accompanied by only brief moments of consolidation, with weekly increases of roughly 25%.

As a result, BTC/USD took out its realised price of $19,700, the historic all-time high of $20,000 from 2017, and the 200-day moving average. The latter experienced its first resistance/support test since October 2021, one month before Bitcoin’s most recent all-time high.

“BTC, like ETH, is gaining traction,” says an on-chain analytics site. On short periods, material indicators have noticed Bitcoin beginning to mimic Ether strength.

Price movement has “pushed past important resistance at the 200-Day Moving Average and the 2017 Top (BTC)/ 2018 Top (ETH),” according to a Twitter post.

“Be prepared for turbulence!” Material Indicators came to an end.

“2 days to go, but this weekly bitcoin candle is firm AF shattering very major trendlines and low timeframe momentum is still strong,” prominent trader Bluntz summarised the forthcoming weekly chart close.

Rekt Capital, a fellow trader and analyst, went even further, comparing parallels to a 2019 event that sparked an entire Bitcoin bull market following the previous halving cycle’s macro low in December 2018.

“The current BTC Weekly Candle is very close to matching the Weekly Candle from April 2019 that marked the start of a new BTC Bull Market,” he said with a chart.

During the now-rare upswing, Bitcoin caused significant pain for bears, liquidating hundreds of millions of dollars in short positions.

According to Coinglass, these reached roughly $125 million on January 14, with nearly $300 million in short liquidations occurring between January 11 and January 14.

For the same three-day period, liquidations totaled approximately $775 million when cryptocurrencies were included.

Dylan LeClair, senior analyst at UTXO Management, highlighted that futures short liquidations have reached their highest daily levels since mid-2021.

“Binance USDT denominated futures went significantly short BTC in July 2021 and paid an arm and a leg to accomplish it,” he stated.

“USD denominated shorts getting liq’d is opposite effect of crypto denominated longs unwinding. 30k summer bottom was set day of FTX fresh raise.”

 

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