to leave a comment.
▲ Bitcoin (BTC)/AI generated image ©
With massive funds from institutional investors flowing back in and a large-scale forced liquidation of short sellers coinciding, Bitcoin, the market leader, has overcome geopolitical crises, breaking through the $72,000 mark in one go and embarking on an unstoppable upward rally.
According to cryptocurrency market data aggregator CoinMarketCap on April 11 (local time), Bitcoin (BTC) rose by 1.77% over the past 24 hours, reaching $72,738.29. The key driver behind this surge is undoubtedly the return of massive institutional capital through spot Exchange Traded Funds (ETFs). On April 9, the U.S. Bitcoin spot ETF market saw a total net inflow of $358.17 million, with BlackRock's iShares Bitcoin Trust (IBIT) alone attracting $269.34 million, leading the overall market rise. Furthermore, the temporary ceasefire between the U.S. and Iran, which calmed surging oil prices and inflation concerns, also positively contributed by creating a favorable macroeconomic environment for risk assets.
What fueled the strong institutional buying pressure was a short squeeze in the derivatives market (buying pressure that occurs to liquidate or cover short positions). Positions that had bet on a decline could not withstand the price increase and were forcibly liquidated, which ironically became fuel, pushing the price up sharply. Over the past 24 hours, a total of $48.66 million worth of Bitcoin positions were liquidated in the derivatives market, with a staggering $42.04 million concentrated in short positions, providing an explosive secondary upward momentum.
However, even amidst such a sharp ascent, derivatives traders are still maintaining a cautious stance. The funding rate in the perpetual swap market currently stands at minus 0.0028%, indicating that market participants are still approaching leverage cautiously and preparing for future volatility.
The market's attention is now focused on whether Bitcoin can break through the massive resistance level thickly formed between $73,500 and $75,000. Currently, approximately $6 billion worth of short positions are entrenched in this range, making it a crucial key to achieving new highs. If Bitcoin, supported by continuous fund inflows from spot funds, firmly holds the 38.2% Fibonacci retracement support level of $71,780, a strong attempt to break through $75,000 is expected to follow.
Conversely, if it fails to overcome this massive selling wall and the $71,780 defense line collapses, short-term downward pressure could increase. In this scenario, the price risks retreating to the next key support zone, the 61.8% Fibonacci retracement level of $69,180, and entering a new price consolidation phase. Ultimately, the daily institutional fund inflow trends and future macroeconomic indicator announcements will be a significant compass determining Bitcoin's short-term direction.
*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.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.