Bitcoin, Short Sellers Completely Annihilated..."$60,000 Won't Come Again"

▲ Bitcoin (BTC)/ChatGPT generated image

Bitcoin (BTC) temporarily surpassed the psychological resistance level of $80,000. Simultaneously, with the forced liquidation of $300 million worth of short positions, the key indicator, the 200-week moving average, exceeded $60,000, forming a strong price floor.

Crypto media outlet U.Today reported on May 4 (local time) that Bitcoin's 200-week moving average (200 WMA) broke above $60,000, suggesting that it is unlikely to trade below this price again. Bitcoin surged to $80,631 at one point during the day, marking its highest level since January 31. The 200-week moving average is considered the ultimate macro support level for the market. Historically, instances of Bitcoin falling below this indicator are very rare, except during extreme bear market sell-off situations.

The futures market experienced significant repercussions from Bitcoin's sudden surge past $80,000. According to data from crypto data analysis platform CoinGlass, a total of $357.34 million worth of positions were liquidated in the past 24 hours. The number of forcibly liquidated investors reached 100,741. Of the total liquidation amount, $305.04 million was attributed to short positions, overwhelmingly surpassing the $52.3 million in long position liquidations. This rally completely neutralized the bearish betting forces in the derivatives market.

The largest single liquidation order was an Ethereum (ETH)-USDT swap trade on Binance, amounting to $11.77 million. Bitcoin's new high in 94 days demonstrated strong upward momentum. Anonymous crypto trader DonAlt analyzed that if Bitcoin's price decisively breaks above the major resistance level of $87,000, market participants will fully embrace a bullish sentiment.

The breakthrough of the 200-week moving average at $60,000 is a result of fundamentally raising the asset's price floor. This means that Bitcoin's value has become more robust from a long-term perspective, removing short-term price fluctuations. Having broken the psychological barrier of $80,000, Bitcoin has maintained its bullish momentum and settled into a new price trajectory. Institutional and retail investors alike are paying attention to Bitcoin's new floor confirmation and are readjusting their strategies.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*