Bitcoin’s Move Towards $10k Liquidated Short Positions Worth Millions on BitMEX
A few hours ago, Bitcoin attempted another rally to $10k, in which it attained $9,950 following the close of its candle on May 17. It could not attain the key $10k price point, since its correction to $9.9k.
This move is yet to prompt a remarkable reaction from the derivatives market, possibly due to sellers’ deleveraging of their positions as they anticipated the current rally. According to the data provided by Skew.com, only $5 million was liquidated while the upsurge lasted and this is far less than other liquidation which ensued in the previous fourteen days.
However, despite the recent bullish moves by Bitcoin, a run into the barrier close to $10k may destroy its short-term uptrend. A renowned cryptocurrency trader on Twitter shared an order book data of Bitfinex’s BTC/USD market, indicating the existence of a huge block of orders looking to sell Bitcoin close to $10k price level which could be difficult to break past.
According to the order book, there are sell orders of approximately 4,200 Bitcoin from $9.9k to $10.6k, and the majority congregate around $10k to $10.4k. That is, on Bitfinex alone, there is more than $40 million worth of sell-side pressure in the attempt of a rally above $10k.
Bitcoin encountered such a sell wall two weeks ago, when it attained a multi-week high of $10.1k and it incurred a robust decline from there to $8.1k within a few days. However, its ability to surge above the barrier will make $10.5k the next focus, a level which renowned cryptocurrency traders have paid attention to within the previous few months.
A look at the macro chart of Bitcoin shows that $10.5k has been a critical level several times, marking the top of rallies two times last year and once earlier in 2020. Its move towards this level once again is prompting analysts to start touting its critical nature. A technical analyst at BlockFyre noted that a move over this level is likely to pave the way to a fresh lifetime highs.