Bitcoin [BTC] has risen almost 11% in the past ten days. It faced a rejection at $75,000 a month ago, but it has managed to climb back above this resistance and tested almost $80,000 on April 22.
The rally resulted in numerous short liquidations, further fueling the movement. The largest of these recent liquidations took place on April 17. On that day, $344 million in short positions were wiped out and Bitcoin reached a local high of $78.3k, a level it has not exceeded since.
Will BTC Hit a Sell Wall?
Crypto analyst Darkfost used Bitcoin’s cumulative funding rate on Binance over a 30-day period to identify market insights. The 30-day sum showed recent sustained negative funding, reflecting a bearish market consensus.
Still, the analyst noted that every time the majority of market participants believed in further losses, a market bottom had instead formed, and this could be the case for Bitcoin again.
Furthermore, disbelief in the current rally could cause a market bottom, the analyst noted.
Crypto intelligence platform Alpharactal agreed that the positioning was extreme. Funding rates were the most negative since 2023. The Tactical Bull-Bear Sentiment Index was at a historic cycle bottom.
There were two possibilities. Either the bottom has been reached, and the price rises above $80,000 and wipes out more short positions. It is also possible that the bottom has not yet been reached, and BTC may need to take another step towards the $65,000 support.
The threat of profit-taking BTC holders
Over the past two months, Bitcoin bulls have been working to push prices to $70,000 and are now targeting $80,000. There have been strong retracement phases, such as the one in the second half of March.
At that time, BTC returned from $76,000 to $65,000.
This could be due to the realized price of BTC whales in the short and long term. Another one crypto analyst emphasizes why the $80,000 was a crucial turning point.
In a post on These were the two most “influential marginal buyer cohorts” in the market. Their price sensitivity and size allow them to set the next course for the crypto market. It’s possible they will buy more and prices will continue to rise.
However, traders and investors should be prepared for the scenario where they take profits and selling pressure sends BTC into a retracement again.
Final summary
- April’s Bitcoin rally has resulted in short liquidations worth millions of dollars, and more could follow.
- The market was at a crucial turning point. The price approached the cost basis of short-term whales, which could trigger a sell-off.