Bitcoin Market Sees Trend of Shorts; $50K Key Support Zone

Bitcoin Market Sees Trend of Shorts; $50K Key Support Zone

By: Isha Das

Bitcoin Market Trend

Recent data reveals a trend of shorting in the Bitcoin market with leveraged positions potentially leading to roughly $1 billion of liquidations between the $52,400 and $53,000 mark. As Bitcoin stabilizes around $52,000, trends show substantial leverage above this level. Additionally, over the past week, Bitcoin has maintained a price above $50,000, despite some volatility and a surge of liquidations during mid-Feb.

This observation suggests that leveraged shorts are at risk of liquidation during market upticks. Furthermore, analysis last week also pointed to an emerging build-up of derivatives in Bitcoin. Therefore, the high leverage and derivatives build-up combination may significantly impact market trends and potentially instigate further volatility.

Bitcoin Price Holding Strong Above $50K

Bitcoin price recently spiked towards the $53,200 resistance, however, is still struggling to clear the $52,500 resistance zone. Trading below $52,400, Bitcoin continues to hold gains above the key $50,000 support zone. Despite this, the price could dip towards the $51,600 support before it attempts a fresh increase.

If Bitcoin fails to rise above the $52,400 resistance zone, it could start another decline in the near term, possibly even towards the $50,500 support zone. If it does descend below this, it could turn bearish in the short term.

Source: BTCUSD on

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