Bitcoin (BTC) headed back to $28,000 on March 29 as a classic short squeeze took the market to five-day highs.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
BTC liquidations mount as Bitcoin reverses Binance dip
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $28,159 on Bitstamp.
The abrupt uptick came courtesy of exchanges , where a band of shorts were “blown out” to remove resistance and allow higher levels to return.
As noted by analyst Skew, these shorts were left over from Bitcoin’s prior moves, and were worth around 1,500 BTC.
“Looks like the previous bounce was shorted heavily & those shorts just got blown out,” part of accompanying commentary stated.
Bitcoin exchange data summary chart. Source: Skew/ Twitter
According to analytics resource Coinglass, total BTC short liquidations for March 29 stood at nearly $20 million at the time of writing.
Bitcoin liquidations chart. Source: Coinglass
Continuing, monitoring resource Material Indicators noted additional changes on the Binance spot order book.
Related: US enforcement agencies are turning up the heat on crypto-related crime
In anticipation of the March 31 macroeconomic data print from the United States, it appeared that traders were preparing for potential buying opportunities should downside enter once more.
“Meanwhile price is pumping. If bulls run out of momentum before clearing $28k, things may get spicy,” comments acknowledged.
#FireCharts shows ~$25M in #Bitcoin bid liquidity that was stacked above the 200 Week MA, was moved down to ~$23.3k, presumably to defend the Monthly Close coming Friday after a fresh PCE report.
Meanwhile price is pumping.
If bulls run out of momentum before clearing $28k,… pic.twitter.com/oZpQPdql12
— Material Indicators (@MI_Algos) March 29, 2023
Bitcoin faces “serious ask liquidity” before $30,000
BTC price action thus effectively erased any trace of losses engendered by news that largest exchange Binance was being targeted by U.S. regulators.
Related: Bitcoin is 1 week away from ‘confirming’ new bull market — analyst
Previously, consensus favored a return to test lower support levels for BTC/USD, this focusing principally on the 200-week moving average at around $25,500.
BTC/USD 1-week candle chart (Bitstamp) with 200MA. Source: TradingView
Skew meanwhile acknowledged that in order for short-term upside to continue, bulls would need to muster some serious buying power
“Thick ask liquidity between $28K & $30K Would need some sizeable market buying to push through here,” a further tweet read.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
