Bitcoin couldn’t maintain its bullish momentum following the ascent of the Bitcoin price to $108,786 (the current record high) in January. This led to a fall to about $74,000 within the months that followed. But the world’s most popular cryptocurrency seems to be roaring back to life.
Even as the Bitcoin price sits comfortably above the important six-figure threshold, an important question sticks around — is the bullish run truly back on? According to recent on-chain analyses, the leader of the market could be getting ready for a new bull run.
Binance Witnesses Largest Shorts Liquidation Since April
Darkfost is a pseudonymous analyst on the blockchain who posted a Quicktake on CryptoQuant. revealed Binance has opened many short positions as Bitcoin fell from its all-time highest price. This part of derivatives was, according to the crypto-pundit, a major source of selling pressure for BTC prices in the months that followed.
Darkfost went on to explain that as the price of BTC started its recovery, these short positions, expectedly — although slowly, got liquidated, becoming buying pressure for the cryptocurrency. This slow-moving series, though, reached a record high on May 8.
As per CryptoQuant dataBinance was the biggest exchange in the world by volume of trading. The chart below is of the on-chain indicator showing the amount of liquidations in USD — the ‘Short Liquidations USD’ metric.
Darkfost also revealed the low funding rate of 0.004. This indicates that there are a lot of shorts on the market and Binance’s traders do not want to take long positions.
Darkfost concluded that further liquidations or closures of these short positions could cause Bitcoin’s bullish trend to regain its momentum, thus facilitating further growth of the premier cryptocurrency. This crypto analyst mentioned that this possible resurgence of bullish power could also push the flagship currency to break above its previous all-time-high price.
Bitcoin Price at a Glance
BTC is currently trading at $104,335, which represents an increase of over 1% in the last day. CoinGecko’s data shows that the cryptocurrency market leader has increased by almost 9% over the last seven days.
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Source: www.newsbtc.com
