Bitcoin’s overnight upswing allowed the crypto to gain what appears to be a firm foothold within the $8,000 region
This movement came about shortly after the extended period of sideways trading that it faced throughout the past several days
It also liquidated millions of dollars in short-positions, leading BTC’s open interest to dive as bears go into hiding
Bitcoin’s notable overnight rally has marked a major extension of the uptrend that was first sparked when it rebounded from lows of $3,800 that were set in mid-March.
The price action seen throughout the past month has allowed the crypto to erase all of the losses that came about as a result of this capitulatory decline, as it is now trading back where it was before the rug was pulled out from underneath it.
This latest movement has left a trail of destruction in its wake, as millions of dollars’ worth of short positioned were liquidated, subsequently leading the cryptocurrency’s open interest to dive.
Analysts are now noting that they generally anticipate Bitcoin to push higher, although its uptrend may be running low on fuel.
Bitcoin Bears Eviscerated by Recent Upswing; Millions Liquidated
The most quantifiable byproduct of today’s rally has been the mass liquidation of short positions seen on crypto trading platforms.
According to data from research and analytics platform Skew, roughly $40 million in short positions have been liquidated so far on April 29th.
Image Courtesy of Skew
The benchmark cryptocurrency’s open interest on trading platform Bitmex dived shortly after these liquidations occurred, signaling that these embattled traders have largely moved to the sidelines as the risk of it seeing further volatility grows.
Image Courtesy of Skew
In the near-term, bulls may move to push the crypto higher, using the remining short positions that have yet to be liquidated as fuel for an extension of this uptrend.
Analysts Foresee Further Upside as Bull Trend Strengthens
Analysts are now widely anticipating Bitcoin to push higher in the near-term due to the technical strength that has resulted from this recent movement.
One pseudonymous trader explained that BTC is currently caught within a broadening descending wedge, with the crypto potentially moving to target the upper boundary of this pattern at $9,400 next.
“Bitcoin Weekly Chart – Approx $9400 would be the top of this broadening descending wedge,” he noted.
Image Courtesy of Big Cheds
Josh Rager – a respected analyst – noted in a tweet that he believes this rally could lead Bitcoin all the way up to its long-term resistance around $8,600 before it stalls.
“BTC: Price pushed above the long term resistance near $7800 and has the potential to push as high as $8600. Looking at the grey box area for next resistance after this strong move up. Continues to look good on high time frames and sitting happily in spot Bitcoin holdings,” he said.
Image Courtesy of Josh Rager
Featured image from Unsplash.