Bitcoin ,BTC/USD) The price made a sharp breakout on Thursday and moved above the key resistance at $24,305, which is the highest point of the year. Overall, the coin has gained almost 60% since its 2022 low.
shorts liquidation on the rise
The bitcoin price jumped in a week that the option was supposed to be. as we wrote in Article, The US published strong inflation numbers on Tuesday. The headline Consumer Price Index (CPI) fell to 6.4% but rose month-on-month.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter today.
And on Wednesday, the US published another set of strong economic data, as retail sales rose 3% in January. Therefore, these numbers mean that the US economy is doing well and the Fed has more room to hike. Thus, this would be a bearish catalyst for bitcoin and other cryptocurrency prices.
The main reason for the rise in BTC price is that short-sellers have started to liquidate their positions again. According to coinglassOn Wednesday, shorts liquidated $155 million in positions, the highest figure since the first week of January. This compared to a long liquidation of only $14 million. In most periods, the price of BTC moves up when the shorts are liquidating their positions.
Binance Possible Settlement With SEC
Another reason for the surge in bitcoin price is likely binanceThe world’s largest exchange will be settle with the SEC, The SEC is investigating Binance for money laundering operations and for illegally providing its services in the US. US regulators are also likely to interfere in the acquisition of Voyager Digital’s assets.
In an interview with the WSJ, Binance’s chief strategy officer said he is hopeful of a solution. In corporate litigation, a settlement is generally preferred than the protracted duration of court proceedings. This is noteworthy because Binance is the biggest player in the crypto industry.
Bitcoin Price Surpasses Key Hurdles
By staging a bullish breakout, bitcoin price managed to clear a key hurdle that it struggled to move higher this month. And since the volume seems to be increasing, it’s probably not a false breakout. Furthermore, BTC has formed an inverted head and shoulders pattern. However this pattern is not well defined.
Therefore, bitcoin is likely to continue rising as buyers attempt to move above $25,000. A move above that level would propel it to $25,209, which is the high of August 13.
Bitcoin Crypto Related Post