- Bitcoin is officially trading at the highest prices it has ever seen, and today is a monumental day for the cryptocurrency
- This historic milestone has been reached after multiple attempts and failures to break above $ 20,000
- The eventual break above this level could now trigger an epic short squeeze that liquidates all $ 20,000 limit short orders that Bears had placed
- A trader now notes that the break above this level will most likely be sustainable as the resistance has been easing around USD 20,000 for the past few days.
- There is now a high probability that a cascade of short-side liquidations could cause cryptocurrencies to rise significantly
Bitcoin and the rest of the cryptocurrency market is currently in the throes of an intense bull market, which comes as Bitcoin sets new all-time highs today at more than $ 20,000.
The cryptocurrency has so far rallied to USD 20,800, but there is limited resistance above the key USD 20,000 level, making it quite easy for the cryptocurrency to navigate higher.
Since a cascade of short-side liquidations also adds to the pressure on the cryptocurrency’s buy side, chances are the cryptocurrency will continue to run until it reaches a psychologically significant level, such as $ 21,000.
Bitcoin sets new highs as the upward trend gains momentum
Bitcoin is currently rallying parabolically, with the numbers increasing roughly every second.
The selling pressure seen in the lower $ 20,000 region does not appear to exist as this outbreak sparked panic buying among bears.
At the time of writing, Bitcoin is currently trading up 6% at the current price of $ 20,750. This marks a massive rise from the recent low of $ 17,600 set a few days ago.
BTC is likely to be boosted by short liquidations
A merchant explained ahead of this morning’s break above USD 20,000, a company crossing this level will create a cascade of sell-side liquidations that will cause the cryptocurrency’s price to skyrocket.
Binance is desperate to save their underwater shorts. However, Perps are starting to go into overdrive. This is going to be a serious fight, but if 20k breaks … The pressure will be epic. “
Image Courtesy of Byzantine General.
We are already seeing the effects of this, with the latter Bitcoin push may mark the start of the cryptocurrency’s next parabolic uptrend.
Featured image from Unsplash. Price data from TradingView.