Bitcoin Bounces On Massive Short Liquidation
Bitcoin has traded sideways for the past several months in the $28,000 – $34,000 range but recent events caused a quick rise in Bitcoin’s price. Bitcoin and other large-cap coins have begun to bounce. A massive $720 million dollar short liquidation had Bitcoin quickly rise to nearly $40,000 and Bitcoin now trades in the $37,000 range.
Data from http://Bybt.com shows a $720 million dollar short position was liquidated. This liquidation caused a quick rise in the price of Bitcoin. Though we don’t know who holds this short position, a likely bullish feeling is what would have led to this. Bitcoin bull runs are historically precursed by short liquidations. This $720 million liquidation, is amongst the largest in Bitcoin trading history.
Theories suggest that ‘The B Word’ podcast that hosted a round table between Cathie Wood, Elon Musk & Jack Dorsey, some of the biggest names in the crypto, shared bullish outlooks shifted market sentiment, this might have been a catalyst for the massive short liquidation. Musk specifically, who has had a more bearish outlook on Bitcoin in recent months has shed some light on his personal views of Bitcoin, which paints a more positive outlook.
Musk stated in the podcast, that he personally owns Bitcoin, Ethereum, and Dogecoin. But more related to Bitcoin, Musk sees it going in the right direction. Musk cited Bitcoin’s continued envirnomental friendliness upgrades, SpaceX’s purchase of Bitcoin, and his own personal ownership of Bitcoin as reasons to look forward to the future.
So Bitcoin investors have a lot to look forward to, following weeks of bearish outlook after China’s crackdown on Bitcoin.
Where can Bitcoin go from here?
At press time, Bitcoin currently trades at around $37,300. General market sentiment has Bitcoin remaining bearish. Bitcoin has to re-test the April highs of $60,000 before we can say Bitcoin is on another bull run. But, Bitcoin is currently coming into a perfect storm of positive fundamentals. Continued bullish news from the likes of Musk and other powerful celebrities in the crypto space, can help add gas to a future bull run.