- Bitcoin hits a new year-to-date of high about $11,800
- The liquidation of Bitcoin on top exchanges is on the rise
- Many indicators and analysts are still bullish on Bitcoin’s near term prospect
Bitcoin News Today – Bitcoin recorded another major move over the past twenty-four hours. Bitcoin recently made a move to $11,800 for the first time in about a year. This means the price of the digital currency is up by about 20 percent this week alone. Over the past day, the price of Bitcoin surged by more than 4 percent.
Liquidations on Crypto Margin Platforms Contributed to BTC’s Recent Growth
The recent massive upsurge in the price of Bitcoin is attributed to an influx of liquidations of digital currency margin platforms. Data from Skew.com shows that BitMEX shorts worth more than $5.3 million have been liquidated in the past day alone. This adds to the millions more that have been liquidated over the past 72 hours as the price of Bitcoin surged higher.
Many expect Bitcoin to break over the $12k mark in the next couple of hours. However, a digital currency analyst just pointed out that Bitcoin has formed a textbook bear signal. Nevertheless, that does not mean that the digital currency would undergo a correction phase.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin (BTC) Forms a Textbook Bear Signal
The price action of Bitcoin over the past twenty-four hours has been quite impressive. Nevertheless, some technical indicators suggest that traders still need to be careful. After Bitcoin hit the $11,800 mark, one digital currency analyst said:
“Double 9’s on the 6hr #bitcoin still early in the candle, could set up as perfected on the close.”
The crypto trader was talking about how the Tom Demark Sequential (TD Sequential) printed a potential reversal candle at the recent highs. The technical indicator forms “9” or “13” candles when an asset is likely at an inflection point. In the case of the world’s most dominant digital currency, a correction is expected.
While it is printing a potential reversal signal, the last time it formed a “9” on the 6-hour chart, the digital currency only corrected for one candle, plunging by about 1.5 percent. With this historical precedent, chances are Bitcoin bulls may ignore the potential reversal signal.
Indicators and Analysts Remain Bullish on Bitcoin’s Near Term Prospects
Many digital currency analysts and indicators are still bullish on the short prospect of Bitcoin. One crypto trader said that provided Bitcoin remains over the $11,500 mark, chances are it would see more gains in the coming weeks. He said:
“Few hours to go before a massive monthly close. Few days to go to close the weekly above 11.5k. I personally wouldn’t have any problems with the Ear of maize hovering between 10k and 11.5k if that’s what needed for sustainable growth to ATH.”