Bitcoin, Short Sellers Completely Annihilated... "$60,000 Won't Come Again"

▲ Bitcoin (BTC)/ChatGPT generated image

Bitcoin (BTC) temporarily surpassed the psychological resistance level of $80,000. Simultaneously, with the forced liquidation of $300 million worth of short positions, the key indicator, the 200-week moving average, exceeded $60,000, forming a strong price floor.

U.Today, a cryptocurrency specialized media outlet, reported on May 4 (local time) that Bitcoin's 200-week moving average (200 WMA) broke above $60,000, suggesting that it is unlikely to trade below this price again. Bitcoin surged to $80,631 at one point during the day, marking its highest level since January 31. The 200-week moving average is considered the ultimate macro support line of the market. Historically, instances where Bitcoin has fallen below this indicator are very rare, except in extreme bear market sell-off situations.

The futures market experienced a massive impact from Bitcoin's sudden surge past $80,000. According to data from CoinGlass, a cryptocurrency data analytics platform, a total of $357.34 million worth of positions were liquidated over the past 24 hours. The number of forced liquidated investors reached 100,741. Of the total liquidation amount, $305.04 million was short positions, overwhelmingly surpassing the $52.30 million in long position liquidations. This surge completely neutralized the downward betting forces in the derivatives market.

The largest single liquidation order was an Ethereum (ETH)-USDT swap trade on Binance, amounting to $11.77 million. Bitcoin renewed its highest price in 94 days, demonstrating strong upward momentum. Anonymous cryptocurrency trader DonAlt analyzed that if Bitcoin's price definitively breaks above the major resistance level of $87,000, market participants will fully embrace a bullish sentiment.

The breakout of the 200-week moving average above $60,000 is the result of fundamentally raising the asset's price floor. This means that Bitcoin's value has become more robust from a long-term perspective, removing short-term price fluctuations. Bitcoin, having broken the psychological barrier of $80,000, has maintained its bullish momentum and settled into a new price trajectory. Both institutional and retail investors are focusing on this new bottom confirmation for Bitcoin and are restructuring their strategies.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*