Bitcoin [BTC] has once again demonstrated its resilience, brushing off a sharp liquidation event that wiped out $359.7 million in long positions. Despite extreme volatility, BTC remains firmly supported, signaling strong buyer conviction amid turbulent market conditions.
Massive Long Liquidation But No Breakdown
According to CryptoQuant, the market recently experienced a large-scale long squeeze, with nearly $360 million in leveraged long positions liquidated within an hour. Typically, such liquidations trigger a drastic price decline. However, BTC defied expectations by rebounding swiftly and stabilizing around $86,000.
This unexpected recovery highlights the underlying strength of spot market participants, who remain unfazed by short-term liquidations. The flush-out of over-leveraged positions could pave the way for a healthier, more sustainable uptrend.
Short-Term Realized Price Levels as Key Support
A key factor supporting Bitcoin’s bullish outlook is its position above critical realized price levels. The Realized Price – UTXO Age Bands chart indicates BTC is holding above the realized price for the 1-day to 1-week cohort ($86,000) and the 1-week to 1-month cohort ($84,000). Historically, these levels serve as strong support zones for short-term holders.
As long as BTC stays above these key price bands, it suggests that strong hands are accumulating, reinforcing bullish sentiment. A break below these levels, however, could signal weakening momentum and increase selling pressure.
Bitcoin’s Technical Momentum Intact
From a technical standpoint, Bitcoin remains above its 50-day Moving Average ($85,250), a crucial level that has provided strong support. Additionally, the Relative Strength Index (RSI) hovers around 50, indicating a neutral stance with no immediate signs of being overbought or oversold.
Furthermore, the MACD indicator remains in positive territory, albeit with a narrowing divergence, hinting at potential consolidation before the next upward move. If momentum regains strength, BTC could retest the $90,000 psychological resistance in the coming sessions.
Also Read: Crypto Analyst: XRP Set to Dominate Bitcoin & Ethereum
Bitcoin’s ability to withstand aggressive liquidations and hold above key realized price levels suggests a strong demand base. However, sustained momentum and increased volume will be crucial for BTC to break out of its current range. If buyers successfully defend short-term support, Bitcoin’s next bullish leg may already be in motion.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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