Bitcoin Short Positions Worth $32 Million Wiped Out as Price Briefly Spikes to Mid-$27,000s – Here’s Where BTC is Headed Next

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By BitcoinWiki News




Summary:

Bitcoin (BTC) futures positions worth over $44 million were wiped out on Monday as the spot price of BTC swung more than 4% between session lows around $26,400 and new highs for the month around $27,400. The BTC price action was driven by expectations for an interest rate hold from the US Federal Reserve and technical buying. A filing from an auditor of Binance.US and the recent support at its 21DMA and downtrend also influenced the price. Around $32 million of the liquidated futures positions were short positions, marking the biggest wipeout of Bitcoin bears since the previous Monday.

Brief Article Summary:

Bitcoin’s futures positions worth $44 million were liquidated on Monday due to the volatility in its spot price. The price swung between session lows and month-highs, driven by expectations for the US Federal Reserve’s interest rate decision and technical buying. The filing from an auditor of Binance.US and the support at BTC’s 21DMA and downtrend also contributed to the price movement. The liquidated positions predominantly consisted of short positions.

Thought-Provoking Questions:

1. How did expectations for the US Federal Reserve’s interest rate decision impact Bitcoin’s price?

Expectations for an interest rate hold from the US Federal Reserve influenced Bitcoin’s price action. The uncertainty surrounding potential rate hikes later this year prevented the market from getting too excited about rate cuts. This also helped to keep US yields and the US dollar supported, which impacted Bitcoin’s negative correlation to these factors.

2. What were the factors that contributed to the liquidation of Bitcoin futures positions?

The liquidation of Bitcoin futures positions worth $44 million was influenced by the volatile swings in its spot price. Technical buying, the filing from an auditor of Binance.US regarding asset collateralization difficulties, and finding support at the 21DMA and downtrend were the key factors behind the liquidation. The majority of the liquidated positions were short positions.

3. What are the key levels BTC needs to break for a retest of yearly highs?

In order for Bitcoin to retest its yearly highs, it would need to break above the key resistance in the $27,700-$28,500 area. This would indicate a bullish trend and potential for further price growth. Without breaking these resistance levels, Bitcoin may remain within its recent $25,000-$28,000 range.


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