Is the Bitcoin bear lost? $31 million was eliminated in BTC shorts liquidation
Bitcoin’s price failed to maintain its bullish momentum, rising to its current all-time high of $108,786 in January, resulting in a crash of about $74,000 in the next few months. However, the Prime Minister’s cryptocurrency seems to have recovered its lives.
Even if Bitcoin prices comfortably exceed the important six-digit threshold, an important question remains – is the bullish running really starting over? Recent chain analysis suggests that market leaders may be preparing to resume their bull runs.
Binance has witnessed the largest shorts clearing since April
In a QuickTake post about CryptoQuant, chain analyst Darkfost revealed that Binance’s second-tier position is a massive mean as Bitcoin drops from its current all-time highest price. This part of the derivatives market is the source of huge pressure on BTC price sales pressure in the coming months, according to cryptocurrency experts.
DarkFost goes on to explain that as BTC prices begin to recover, these short poses (although slowly) are liquidated, which becomes buying pressure for cryptocurrencies. However, this series of slow liquidation reached new single-day highs since May 8 to March.
Global exchanges that pass through volumes account for more than $31 million in short positions, according to encrypted data. The figure below is an on-chain indicator showing the amount of clearing in USD – the “Short Clearing USD” metric.
In addition, DarkFost shows that the relatively low funding rate is about 0.004. This trend shows that there are a large number of positions in the market and are unwilling to exist for a long time.
Darkfost concluded that further liquidation or closure of these short postures could lead to a regaining momentum in Bitcoin’s bullish trend, thereby facilitating further growth in the Prime Minister’s cryptocurrency. The crypto analyst also mentioned the possibility that this potential bullish force could push flagship cryptocurrencies to exceed their previous high prices.
The price of Bitcoin is clear at a glance
As of this writing, BTC is about $104,335, reflecting over 1% of the past day. Flagship cryptocurrencies have grown nearly 9% over the past seven days, according to Coingecko data.
