Bitcoin’s price jumped above $28,000 on March 29, after a short squeeze removed resistance and allowed higher levels to return. The sudden uptick resulted from a band of shorts being “blown out” on exchanges, worth around 1,500 BTC, media reports said.
Coinglass, an analytics resource, reported that the total liquidations of BTC shorts for March 29 reached nearly $20 million at the time of writing. The BTC price managed to offset the negative impact caused by the reports of U.S. regulatory scrutiny on Binance, the largest cryptocurrency exchange.
Prior to this, the general consensus among experts was that the BTC/USD would revisit lower support levels, with a particular emphasis on the 200-week moving average of about $25,500.
Nevertheless, analysts are now uncertain if the bullish momentum will persist due to the sudden price surge. An analyst, Skew acknowledged that to maintain short-term upside, buyers would need to gather significant buying power with “thick ask liquidity” between $28,000 and $30,000.
If the bulls run out of momentum before clearing $28,000, things could get spicy, warns Material Indicators.
Meanwhile, traders prepare for potential buying opportunities should the downside enter again. As anticipation builds around the March 31 macroeconomic data print from the United States, traders are reportedly preparing to take advantage of any potential dip in the market. However, with the sudden surge in BTC price, it remains to be seen whether the bears can gain control.
The sudden shift in BTC price has got investors and analysts closely monitoring the market for any further developments. As the crypto market continues to gain momentum, it’s clear that Bitcoin is here to stay, and investors will need to stay alert to keep up with the ever-changing landscape.