Bitcoin (BTC) surpassed the $80,000 level in recent hours with a strong surge, resulting in hundreds of millions of dollars worth of liquidations in short positions in the cryptocurrency market. Jiang Zhuoer, a well-known cryptocurrency miner from China, stated that the rally may not be over yet, suggesting Bitcoin could test the $83,000-$84,000 resistance zone.
Bitcoin’s price, after fluctuating around $78,000 throughout the day, experienced a sharp surge, climbing above $80,000 in a short period. Following this rise, BTC began trading at approximately $81,000.
Jiang Zhuoer, in his latest market analysis, stated that Bitcoin has recovered without falling below $75,000, as he had previously predicted. According to Zhuoer, the rapid pace of this recent rise could lead the price to head towards the strong resistance zone between $83,000 and $84,000 in the next phase.
However, Zhuoer believes that a potential rise towards that region could be followed by another sharp correction in the market. The renowned miner stated that after short positions are liquidated at the $83,000-$84,000 level, Bitcoin could retreat to the $72,000-$74,000 range, this time liquidating long positions.
During the recent rally, it was noteworthy that short positions in the futures market suffered significant losses. In the last four hours, a total of $306.55 million worth of positions were liquidated, with $286.14 million of that being short positions. Liquidation of long positions remained at $20.41 million.
In the last 12 hours, total liquidations reached $411.62 million, with $372.53 million wiped out from short positions and $39.09 million from long positions. The total liquidation amount over the 24-hour period was $515.05 million, of which $457.26 million was from short positions.
*This is not investment advice.
Continue Reading: Bullish Sentiment in Bitcoin: We’re Above $80,000 – A Chinese Analyst Shares What to Expect Next