BTC Price at Critical Level: Bitcoin Approaches Short Liquidation Zone

Bitcoin (BTC) surged above the key $69,000 level during the March 25 Wall Street session, signaling a rebound in the cryptocurrency. BTC/USD reached $69,463 on Bitstamp, with Bitcoin now up nearly 3% for the day. This gain helped to offset the losses from the previous week. Despite reaching the top of the previous bull market cycle, $69,000 still acted as a significant psychological barrier. Popular trader Skew stated that Bitcoin needed to close above $69,000 with bullish momentum to further strengthen its position. The trader also noted that there was significant buying support at $60,000, but major resistance was expected at all-time highs around $74,000. The trader believed that bids were moving closer to the current spot price.

Keith Alan, co-founder of trading resource Material Indicators, offered a more cautious perspective on the BTC price recovery. He warned that the lack of nearby bid liquidity could hinder the current rally. Alan stated that if Bitcoin could close above $61,100 this month, it would be the seventh consecutive monthly close in the green. He believed that a retracement or retest of support could still occur before the monthly close. While he remained fairly bullish in the longer term, Alan highlighted the potential for increased volatility during the upcoming Halving event. He emphasized the concentration of bid liquidity in the $58,000 to $60,000 range, which aligns with the 50-day moving average and could represent a 20% correction from the new all-time high.

The liquidation risk for Bitcoin traders increased as more than $50 million worth of BTC shorts were liquidated within a 24-hour period. This reinforced the consequences for traders on the wrong side of the Bitcoin trade. A break above $70,600 could trigger a $500 million short leverage.