Bitcoin’s ascent today pushed past the $52,000 mark, continuing its upward trend and triggering significant losses for short sellers. The volatile nature of Bitcoin’s price demands investor vigilance as a surge in value can result in the forced liquidation of short positions.
Bitcoin Short Sellers Face Liquidation Spike
Spot Bitcoin Exchange-Traded Funds (ETFs) are reportedly contributing to the cryptocurrency’s price momentum, experiencing a record single-day inflow of $631 million on February 13th. The rising interest in Bitcoin has been detrimental for short sellers, as Coinglass data shows that short positions worth over $73.82 million have been liquidated within the last day. Bitcoin’s market capitalization has also reclaimed its $1 trillion valuation this week.
Bitcoin Sees Minimal Price Resistance
Bitcoin’s trajectory suggests it could maintain its upward trend without facing significant resistance. The cryptocurrency has breached the $52,000 threshold and support levels are identified between $45,623 and $46,738, in case of a price correction. The Moving Average Convergence Divergence (MACD) indicator forecasts a continuation of the bullish trend, hinting that Bitcoin could retest its record peak.
ETF Inflows and Halving Event Propel Bitcoin Growth
Bitcoin’s recent gains may be propelled by expectations of the upcoming 2024 halving event and substantial capital flows into spot Bitcoin ETFs. The ETFs’ hefty investment influx is viewed as a positive sign for Bitcoin’s valuation. Currently, Bitcoin is trading around $51,877 and although it has slightly retracted from surpassing $52,000, market sentiment remains optimistic. Prominent analyst Michael van de Poppe predicts Bitcoin’s price could climb to between $54,000 and $58,000.