Bitcoin price rose to $ 10,200 in an unexpected weekend rally today. The price hike has wound up more than $ 74 million on BitMEX.
There seem to be two main reasons behind the abrupt Bitcoin price rise from $ 9,700 to $ 10,200. Namely the liquidation of leveraged short contracts and traders who take their profit on certain altcoins.
Altcoin prices fell while BTC prices rose
When the price started to rise, large altcoins started to go down, most altcoin prices just started to fall. Certainly DeFi altcoins saw a fairly steep price drop.
The simultaneous price drop of major altcoins and Bitcoin’s price hike suggests that traders have taken their profits from the recent altcoin rallies. The traders moved their capital from the altcoins to Bitcoin, bolstering an upward trend of BTC.
When Bitcoin initially broke the $ 10,000 mark, it caused many short contracts to be liquidated. When BTC reached $ 10,200, this again caused a cascade of long liquidations totaling $ 74 million.
The massive liquidations of $ 10,000 long contracts also suggest that the $ 10,000 to $ 10,200 limit remains a very strong area of resistance. Once BTC reached $ 10,200, the price quickly dropped back below $ 10,000.
Bitcoin is once again approaching a crucial level
While the Bitcoin price has risen sharply in recent years, more and more analysts and investors expressed optimism about both BTC and ETH. For example, analyst Peter Brandt said that he expects the Bitcoin price to hit a new record and eventually rise above $ 50,000. He said:
“That’s actually what I expect. I see a huge symmetrical triangle pointing to ATHs and then reaching the $ 50k. ‘
Despite all positivity, it is wise to be attentive. The crypto market has made huge gains in recent times and that could mean that the rally is starting to ‘overheat’. In addition, the $ 10,200 to $ 10,500 zone still counts as a huge resistance level. Bitcoin can only rise further if this zone is broken.