- Bitcoin price broke above $22,500 to reach a new high above $25,000 amid searches for short stops and liquidation.
- The $25k move resulted in short liquidations of over $155 million.
- Although the price could drop as low as $24,000, analysts at Bitfinex say that the recent price movement could be a signal to the downside.
bitcoin price Briefly rose above $25k before slipping back under key psychological and technical territory.
The return to this week’s lows follows a 10% gain and a green weekly candle, according to analysts at cryptocurrency exchange Bitfinex. However, the benchmark crypto did not close a significant daily candle in that area.
Still, it’s likely that the price action is another big move toward the “later stages of a dreadful bear market,” the analysts noted. reports,
BTC surges to $25k on massive liquidation
The Bitfinex analyst also suggested that bitcoin’s breakout from the $22,500 price level to highs above $25,000 was driven by the massive liquidations recorded over the past few days.
Commenting on the BTC price outlook and what could happen in the coming weeks, he said in a statement shared with CoinJournal.
,Over the past two weeks, BTC price has been falling victim to both over-leveraged long positions as well as over-eager shorts totaling over $155 million. In the process it hit an eight-month high of $25,000. Another sharp but short-lived pullback caught some short-term bullish speculators who were betting on an upper $25,000-$26,000 range on Thursday, February 16, as evidenced by a surge in liquidation of long positions that day. Profit-taking in the wake of the recent rally and stops that turned overly aggressive could push bitcoin back below $24,000 in the coming week.,
On what happens next, analysts say prices have been volatile in the recent past due to historical price changes. This is due to the action that saw both the long and the short are erased together.
,The most likely move forward is to partially exit positions and wait for a range to form without a strong directional bias.,” he explained.
In a tweet prediction for the price of bitcoin, YouTuber and crypto analyst Sheldon The Sniper says that bitcoin could go up to $28k or find support at $21k again. He shared the upward outlook as the price of BTC continued to hover around $25,683 on Tuesday at 2:15 p.m. ET.
1 hour chart forms a flag and is an important level for the market
We have a support and resistance trendline and ultimately whatever trend we close outside will give us the next direction. resistance breakdown we go to 28K
break of support we go up to 21K pic.twitter.com/1BdbR0wpjR
— Sheldon The Sniper (@sheldon_sniper) February 21, 2023