The crypto market has entered the new week on strongly bullish grounds. Bitcoin, the benchmark cryptocurrency, rose to a price of over $47,200; a price level last held on January 3.
Massive shorts liquidations spurring Bitcoin’s price rally
Santiment, a market behavior analysis platform, argued that the price surge has been due to massive shorts liquidations over the weekend. Per their data, funding rates for altcoins first saw a huge short ratio. This was followed by shorts liquidation in the Bitcoin derivatives market. The result of the liquidations move has been a spike in “all of crypto,” Santiment wrote.
🚀 #Bitcoin launched to $47.2k, its highest price since January 3rd. The massive amount of #shorts that were growing on exchanges is the primary culprit for this jump. #Altcoins really saw a huge #short ratio at 1pm UTC, followed by $BTC at 6pm UTC, spiking all of #crypto. 🤯 pic.twitter.com/vOi8YBmP4s
— Santiment (@santimentfeed) March 28, 2022
Liquidations data from Coinglass confirms this. In the last 24 hours, futures liquidations reached $417.57 million, of which 78.4% of the figure were short liquidations. Crypto exchange FTX contributed the highest amount of liquidations ($150.28 million) and is trailed by Binance’s $123.28 million.
Short liquidations have been the only driving factor of the market. There was also increased trading activity over the weekend going by intelligence from CoinMarketCap. The total transaction volume of the crypto market exceeded $100 billion, a 63.07% increase over the previous day.
Similarly, the crypto market capitalization now stands at a value of $2.12 trillion, a 4.72% increase over the last day, and a 4.75% growth from February levels.
A sustained bull run is a strong possibility, according to this analyst
In the prevailing market conditions, analysts are predicting greater highs to come for the market. For Kripto Mevsimi, a verified analyst at CryptoQuant, the recent futures market action is a “good thing.”
Writing a Quicktake on the crypto market analytics platform, Mevsimi noted that the funding rates data was highly bullish for the market, as this has been the first time that the metric has been neutral in the last four market rallies.
He argues that it indicates that most market participants expect the price surge to break down like other times. The expectation, which is also reflected in the absence of heavy long trading, is the best chance for a bull run for the market.
“If they keep the same attitude and “disbelief” then this try, can be the best chance for bulls since the beginning of this year to see higher levels,” the analyst commented.
This is coming after Bloomberg’s analysis based on the Fibonacci extensions technical indicator hinted at Bitcoin targeting a price of $54,000.