This morning at 6 am, BIT again broke through $66,000, reaching a high of $66,500, testing the previous high at the end of September. After briefly breaking through the downward trend line, the market is closely watching whether the upward trend can continue to break through the resistance level, or whether it will retreat and consolidate again.
Large-scale liquidation drives push
This time, BIT rose 6.9% within 8 hours, and a major driver was the liquidation of SHORT positions. BlockTempo reported yesterday that if BIT breaks through $65,000, centralized exchanges will liquidate $396 million in SHORT positions, and according to Coinglass data, the crypto market has seen over $240 million in liquidations in the past 24 hours, of which $208 million were SHORT positions, which is also reflected in the surge in funding rates.
In addition, according to data from Santiment, during this rebound period, the DeFi liquidation volume of BIT reached the second highest level in more than three months. This is worth noting, as the last time such large-scale liquidation occurred, BIT experienced a 20-day, +29% price increase. If history repeats itself, this could be a strong bullish signal, indicating that the price is likely to rise further.
Market sentiment improves
As BIT temporarily soared above $66,000, Santiment posted this morning that investors are looking for opportunities in the GameFi and MEME coin sectors. They believe that from a historical perspective, this is a sign that market sentiment is improving.
Against this backdrop, many traders are betting on the possibility of BIT breaking through the $70,000 mark. JJ, Head of Crypto Options and Derivatives at HighStrike, said:
With BIT breaking above the 200-day moving average, the interest of option buyers in the market has been rekindled. Kelly Greer of Galaxy Digital mentioned that the most popular of these options are the $75K-$100K strike price calls for the fourth quarter of this year.
Increase in exchange stablecoins
There are also positive signs in the flow of stablecoins on exchanges. Santiment wrote that the inflow of USDT to exchanges has rebounded slightly, and the inflow of stablecoins to exchanges is usually an important driver for the market to continue rebounding. It is suggested to continue to observe whether this trend will continue.
Resistance still exists
Looking ahead to the future of BIT, JJ warned that due to the large sell orders accumulated above the Coinbase order book, resistance above the September high still exists. He further pointed out:
Although the market shows signs of breaking new highs in the fourth quarter, as long as these sell walls remain, investors should expect the market to fluctuate within a certain range and may experience downward liquidity sweeps.
In addition, BIT's performance in the fourth quarter is also expected to be affected by factors such as the US presidential election and the Federal Reserve's interest rate cuts, which are worth continued attention.
