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Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U. Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Bitcoin recovered from its sideways trading at the start of the week, surpassing $57,000 for the first time since December 2021.
Bitcoin’s advances continued on Wednesday, reaching intraday highs of $57,790 at press time. The flagship cryptocurrency’s price last increased by 3.27% to $57,746, according to CoinMarketCap data.
Bitcoin (BTC) is facing a critical test on its path to recovering its all-time high of $69,000, set in November 2021. According to IntoTheBlock data, 1.49 million Bitcoin addresses purchased 432,920 BTC at prices ranging from $56,961 to $67,413, with an average of $60,330.
This represents approximately 3% of Bitcoin holders who may look to sell once Bitcoin reaches its breakeven price, resulting in selling pressure.
In the case of a BTC price correction, the next key support lies between $55,134 and $56,961, where 513,730 BTC were bought by 991,220 addresses at an average price of $56,036, per IntoTheBlock data.
However, the danger of massive liquidation looms if Bitcoin loses the $56,000 level. According to Ali, who cited Coinglass’s Bitcoin liquidation heatmap, $300 million worth of long positions are at risk of being liquidated if BTC falls to $55,900.
This scenario may cause a cascade impact, as liquidations can increase selling pressure and drive the price lower.
Bitcoin, the first and largest cryptocurrency, has added $800 billion to its market capitalization since Jan. 1, 2023. Bitcoin’s market capitalization was around $320 billion at the beginning of 2023 and has since grown to $1.13 trillion, making it the world’s tenth-largest asset.
Bitcoin is now less than 20% of its all-time high of $68,982.20, set in November 2021. Investors expect it to achieve a new record after the launch of ETFs and the network’s forthcoming halving event, which has traditionally laid the groundwork for a significant surge in the months that follow.