© Reuters. Bitcoin (BTC) Endures $145 Million Bloodbath: $45,000 Price Surge Drives Liquidations
U.Today – The cryptocurrency market has witnessed a crucial rise in (BTC) price, reaching a high of $45,000 which resulted in significant liquidation volume. In a surprising move that took many by surprise, the market saw liquidations worth $145 million. Most of them were short positions, in which traders had bet on a market reversal in early 2024, only to be swept away by an unexpected bullish momentum.
This sudden strong Bitcoin price action is a clear indication of the continuation of the bull run, signaling a powerful start to the year. An advance above the $45,000 mark not only indicates good things for market sentiment, but also strengthens the belief that the bull market continues. The next big event on the horizon is the planned approval of a Bitcoin spot ETF in the second week of January.
Source: Investors, although optimistic, should prepare for volatility as the market could experience a “sell the news” event after the ETF’s approval. These events typically occur when the price of an asset rises in anticipation of a positive event and then falls after the event occurs when traders make profits.
Bitcoin price behavior
Looking at the price performance of Bitcoin, it is evident that the price has followed an upward trajectory. The chart shows a clear break above the $45,000 resistance level, which has now become a support zone. This level was previously a significant resistance for Bitcoin and breaking above it has been a bullish sign.
The moving averages on the chart present a strong bullish pattern, with the price now well above the 50-day and 200-day moving averages, suggesting a strong bullish trend. The 50-day moving average, in particular, appears to act as dynamic support for the price, indicating sustained bullish pressure.
The volume bars show an increase in trading activity around the breakout point, confirming the momentum behind the move. The Relative Strength Index is climbing into overbought territory, reflecting the strong buying pressure that has accompanied the recent price surge.
This article was originally published on U.Today.
