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Leading cryptocurrency Bitcoin started the week with a strong move, with its price surpassing $85,000 for the first time in months.
While the question now is whether the uptrend will continue, important assessments have come from Glassnode analysts and CryptoQuant CEO Ki Young Ju.
Closing Short Positions Accelerated the Rise!
Glassnode, an on-chain analytics company, stated in its latest assessment that Bitcoin has increased its upward momentum by breaking through the liquidation zone of short positions accumulated between $82,000 and $86,000.
Glassnode data indicates that a significant amount of short position liquidity has accumulated in Bitcoin between $82,000 and $86,000.
According to Glassnode analysts, the fact that Bitcoin did not experience the expected sharp pullbacks in that region led investors who had taken short positions to buy $BTC to close their positions. These transactions, triggering further liquidations as the price rose, contributed to the acceleration of the movement.
“As expected, Bitcoin quickly broke through the short liquidation wall.”
Short positions accumulated between $82,000 and $86,000 over the months, but the rejection at that level was insufficient.
Now these short positions have become fuel, because these traders need to buy back $BTC.”
Bitcoin Crosses Critical Threshold Again!
CryptoQuant CEO Ki Young Ju, in an analysis posted on his X account after the rise, stated that one of Bitcoin’s long-term trend indicators has once again crossed above a critical level.
According to Ju, Bitcoin has once again surpassed its 365-day moving average, which is around $83,000, and the price is trading above $84,000.
According to Ju, this moving average is one of the key levels that market participants monitor to assess whether the Bitcoin bear market has ended. CryptoQuant had previously considered a significant breakout above the 365-day moving average as an important signal confirming a new bull market.
Ju concluded by stating that if Bitcoin manages to stay above this level, buying pressure from trend-following investors and institutional investors could increase.
“Bitcoin reclaimed the 365MA at the $83,000 level and is currently sitting above $84,000.”
This is the line everyone is watching for the end of the bear market. If it holds, momentum will start to drive traders and institutions crazy with FOMO.
This is where things get fun.”
*This is not investment advice.