The Bitcoin market just witnessed another episode of intense volatility. On July 19th, the world’s leading cryptocurrency skyrocketed over $3,000 in a mere four hours, sending shivers down the spines of short sellers. Data from Cointelegraph Markets Pro and TradingView paints a picture of a market primed for a squeeze.
The sudden surge saw BTC/USD shoot up from $63,303 to a staggering $66,506, leaving short positions scrambling. At the time of writing, the price continued its ascent, reaching an intraday high of $66,773 on Bitstamp.
Independent analyst Caleb Franzen reacted enthusiastically to the price action: “New short-term highs for #Bitcoin confirm the uptrend is alive and well, with higher highs and higher lows continuing. This constructive price action, with key breakouts above resistance levels, suggests bulls are firmly back in control.”
This week’s price movement has been a dream come true for day traders. After a period of seller exhaustion and the failed assassination attempt on former US President Donald Trump, Bitcoin experienced a steady climb to near $65,000. Those who bet on a price correction got burned on July 19th. Today’s rally liquidated a staggering $40.83 million in short positions within just four hours, adding to a 24-hour total liquidation of $131.65 million. CoinGlass’s Bitcoin liquidation heatmap further highlights the pressure on short sellers, with $83.38 million in ask orders precariously perched between $66,880 and $67,000, at risk of liquidation if the price keeps climbing.
However, a note of caution emerges from Michaël van de Poppe, founder of MN Capital. He observes that Bitcoin’s retail demand is currently at a three-year low, reflecting a cautious market sentiment.
While consistent inflows into Bitcoin investment products suggest institutional investor interest, van de Poppe emphasizes the need for retail investors to return to the market for a sustained bull run. He shared a CryptoQuant chart demonstrating the decline in retail demand since Bitcoin’s March highs, suggesting a potential turning point is needed.
Analyst Woominkyu, a CryptoQuant author, echoes this sentiment: “The real bull run typically begins with massive buying volume driven by retail investors. And we have not yet seen this volume.”
Despite the lack of retail participation, long-term forecasts remain optimistic. Analysts anticipate a Bitcoin price exceeding $200,000 once a parabolic uptrend takes hold. Only time will tell if retail investors will join the party and propel Bitcoin to new heights.
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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