The flagship cryptocurrency has been in a state of correction for the last three months. After setting a new ATH of $64,800 back in April, the beacon coin drifted drastically from its evaluation. The flagship crypto has been consistently moving downwards and has lost a 55% value since April. However, in the last 24 hours, a drastic change has come to pass in the market.
Bitcoin is trading above the $40K price mark. Most investors in the market point towards the fundamentals for playing their part in the current price rise. On the other hand, there are many investors like PlanB who claim that Bitcoin could reach $5 million in the next five years. Meanwhile, investors like Willy Woo already claimed last week that the weekend price formation is looking good for a bullish climb.
Liquidation of Bitcoin Short Positions in Massive Quantities
According to TradingView, Bitcoin is valued at $40,213.4 at press time. In the same manner, more or less, many sources confirm that Bitcoin has gained 14% in a matter of 24 hours. This is the first time the flagship cryptocurrency has crossed the $40K mark since mid-June 2021.
The breaking point for the market arrived when Bitcoin was priced at $39K on Sunday. This, in turn, created pressure that targeted short positions in great numbers. As per estimation, around $883 million short positions were present in the market. Thus far, 81% of the short positions have been liquidated, which is valued at $720 million.
While the bulls are celebrating, for the time being, the celebration might not last for a long time. A market analyst claims that the recent rise of Bitcoin is dependent on many fundamental factors. There have been rumors about Amazon jumping onto the Bitcoin bandwagon. On the other hand, the continuous mining exodus imposed by the government of China also plays a role.
The founder of GSR Market, Rich Rosenblum, claims that the Chinese government blanket ban has encouraged the increasing selling pressure in Bitcoin markets. He further added that the short positions that are liquidated in massive numbers would lessen with time.