"Short-sellers annihilated"...Bitcoin finally breaks the $80,000 barrier

▲ Bitcoin (BTC)

Bitcoin (BTC) is leading a strong upward rally, bolstered by Morgan Stanley's record-breaking spot ETF debut and expectations of regulatory easing. The overall virtual asset market is attempting to stabilize, maintaining a market capitalization of $2.41 trillion, driven by a short squeeze.

Crypto media outlet BeInCrypto reported on April 10 (local time) that the total virtual asset market cap rose by 0.63% from the previous day. This surge was driven by a massive short squeeze. Over the past 24 hours, short positions totaling $247.89 million were forcibly liquidated. This accounts for 73% of the total liquidation amount of $340.10 million. A total of 123,299 traders suffered massive losses due to forced position closures.

Bitcoin showed strength, outperforming the overall market return. The success of MSBT, a Bitcoin spot ETF launched by Morgan Stanley, served as a catalyst. Amy Oldenburg, Strategy, evaluated this achievement as the best record in the company's history. Furthermore, news of the CLARITY Act, a U.S. cryptocurrency market structure bill promoted by the U.S. administration, is acting as a major regulatory boon.

From a technical analysis perspective, Bitcoin is attempting to break past the Fibonacci 61.8% retracement level of $73,249. If it successfully closes above this point on the daily chart, an upward trajectory to $78,392 opens up. On the downside, the Fibonacci 50% level of $71,660 is acting as a key support level. The overall market cap is aiming to reclaim the $2.44 trillion resistance level, currently above the $2.39 trillion support level.

Zcash (ZEC) surged 17% in 24 hours, attracting market attention. It finally broke above a 73-day descending channel, turning its technical structure bullish. If it maintains the $341 support level, it could extend its rally to $583, passing through the Fibonacci 161.8% extension level of $433. Conversely, if it falls below $341, this breakout will fail, and there is a risk of being trapped in a downtrend again.

The virtual asset market is going through a volatile period where buying and selling forces clash fiercely after the short squeeze. Morgan Stanley's large capital inflow and the proposed legislation are strong pillars robustly supporting the market's downside. Investors are keenly responding to the situation of high price volatility by observing whether key technical indicators are broken. The institutional-led market, spearheaded by Bitcoin, is expected to gain strength for the time being.

*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.*