Bitcoin Surges Past $65k, Liquidations Fuel Rally, $70k Next?

Bitcoin ($BTC) surged to the $65,000 price level, reaching a daily high of $66,482. The cryptocurrency hit the resistance zone, and an uptrend will be confirmed if $BTC maintains price action above $66,000.

Santiment, a blockchain analysis platform, noted this is the first time since September 27th that Bitcoin has broken above the $66,000 price level. The liquidation of shorts in the past 24 hours is a major driving force behind this surge in $BTC’s price. Santiment explained:

“As traders with short positions were forced to close out (either voluntarily or through margin calls), it resulted in a rapid price increase, sparking even more upward momentum.”

Additionally, Bitcoin trading volume also hit a two-week peak as $BTC began its surge starting at 15:35 UTC, Monday. It is important to note that DeFi liquidations for Bitcoin saw their second-highest spike in over three months during the current cycle.

Santiment pointed out that the last time liquidations of this magnitude were seen, “Bitcoin went on a 20-day, +29% price rally.” The blockchain analysis platform believes that another strong rally is on the horizon because historically, massive DeFi liquidations lead to higher prices for Bitcoin.

Bitcoin at $70,000?

On Monday, predictions of Bitcoin reaching $70,000 and above rose to their highest levels since August, which suggests that investors are expecting a breakout for the leading digital asset as trading volume also soars.

According to CoinMarketCap, Bitcoin is trading at $65,299, up 2.5% in the past 24 hours. Over the past week, the market leader has grown around 4.6%, but $BTC remains 11.46% lower than its all-time high of $73,750, witnessed in January this year following the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States.