- In three days, there was a total liquidation of nearly $775 million for altcoins.
- Dylan LeClair, senior analyst at UTXO Management noted that this is their highest daily level since mid-2021.
The bullish sentiment of Bitcoin is all green as the asset breaks multiple key support points to record a 23 percent increase in the last 7 days and a 26 percent increase in the last 30 days to trade at $21,170. Bitcoin is hovering around this price point for the first time since November 2022. Also, the Bitcoin short liquidation is said to have set an 18-month record.
About $125 million of shot liquidation was recorded on January 14 according to Coinglass. This brings the total to $300 million from January 11. Over the three days, there was a total liquidation of nearly $775 million for altcoins. Dylan LeClair, senior analyst at UTXO Management noted that this is their highest daily level since mid-2021.
July 2021 saw Binance USDT-denominated futures going extremely short BTC and paying an arm & a leg to do it.
USD-denominated shorts getting liq’d is the opposite effect of crypto-denominated longs unwinding. 30k summer bottom was set day of FTX fresh raise.
In the last couple of days, analysts observed that BTC/USD had shown signs of going past the $19,000 mark following the start of the United States equities trading. However, it was not clear whether this was a breakout or a fakeout. Material Indicators, an on-chain analytics resource, noted that Bitcoin was imitating the strength of Ethereum in a short timeframe.
A popular trader identified as Bluntz also disclosed that the asset has broken a key resistance at 200 Day Moving Average.
2 days to go but this weekly BTC candle is solid AF breaking very key trendlines and low timeframe momentum is still going strong.
Bitcoin could record a decent upside this year, says Rekt Capital
The Bitcoin market went into a long bearish mode after an impressive late 2017 and early 2018 bull run. A trader and analyst, Rekt Capital, has also analyzed the event in 2019 that triggered the post-2020 bull run.
Current BTC Weekly Candle is very close to equaling the Weekly Candle from April 2019 that confirmed a new BTC Bull Market.
Rekt Capital has strong hopes that Bitcoin could deliver gains that are stronger than what people think. They analyzed the four-year cycle of Bitcoin with the halving as a focal point.
According to them, 2023 is the final deadline for its bottoming candle. In Bitcoin’s current cycle, 2023 is the third candle with 2024 being the fourth. This means there should be a price floor this year according to the analysts. They also stated that candle 3, which represents this year, can still generate a decent upside as shown in historical data. 2015, which was a candle 3, saw over 234 percent surge for Bitcoin. 2019, which was another candle 3, saw over 316 percent surge for the asset. Based on this, 2023 could be a decent year.
Reventure Consulting founder and CEO, Nick Gerli has, however, cautioned that deflation could affect sentiment in the market.
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The Savings Rate just collapsed down to 2.2%, the lowest level ever. Means Americans are running out of money. Last time it was this low was 2006-07. Right before GFC. Major Recession Warning. Expect a big decline in consumer spending in 2023.
