• Bitcoin continues to make gains as it records a 23% rally in the last 7 days.
• The top 10 cryptocurrencies have seen similar price action with Ethereum (19%) and Polygon (18%) leading the pack.
• Over $450 million in short liquidations have been recorded as BTC began its ascend.
The Bitcoin rally continues as the cryptocurrency smashes all resistance levels and seems ready to reclaim more ground. The number one crypto by market capitalization has seen a double-digit gain over the previous week leading the pack of the top performers in the sector. As of this writing, Bitcoin traded at $21,400 with sideways movement in the last 24 hours. The BTC price records a 23% rally in the previous seven days. Other cryptocurrencies in the top 10 record similar price action with Ethereum (19%) and Polygon (18%) leading the pack.
The crypto has seen some losses but could recover during today’s trading session. Bitcoin’s price trends to the upside on the daily chart, which is a sign of continued bullish momentum. Any “good” price rally must be a “hated” rally; Bitcoin follows this rule. As the cryptocurrency trended to the upside from its yearly lows, crypto traders began shorting it with overleverage positions. When Bitcoin was about to breach $17,500, the price action went sideways, allowing overleverage shorts to take positions; these traders were expecting BTC to fail the re-test of this resistance level.
However, their positions provided liquidity to the upside and the fuel to send Bitcoin to its current levels. According to a report from Bitfinex, $450 million were recorded in short liquidations as BTC began its ascend. This data represents the most significant short squeeze since July 2021 across the crypto market, as seen in the chart below.
The Bitcoin rally shows no signs of slowing down and traders are already speculating about the next price level. With the recent news that PayPal is enabling its US users to buy, sell and hold Bitcoin, the cryptocurrency is likely to gain further ground. Analysts predict that it could soon breach the $22,000 level and could even reach $25,000 by the end of the year. With the institutional acceptance of Bitcoin increasing, its price could continue to go up in the near future.