Bitcoin (BTC) price just passed $ 16,000 on the fourth retest. However, on BitMEX and Bitfinex, short liquidations totaled around $ 13 million. This shows that the sustained uptrend is more organic than an overheated, futures-driven rally.
Still, the price of Bitcoin quickly fell 3.5% after hitting $ 16,160 on major exchanges including Binance. Within two hours, BTC rose to $ 16,160, fell to $ 15,600, and bounced back to $ 15,750.
It’s a bio bitcoin rally that is driving the price up
The retreat that occurred after BTC topped $ 16,000 is in line with the corrections Bitcoin made over the past week.
Since November 6, the dominant cryptocurrency has tested the resistance level of USD 16,000 four times in a week. Each retest was associated with a relatively large retreat, likely caused by whale sell-offs.
Despite mounting pressure to sell from miners and whales, Bitcoin managed to break out of the feared resistance of $ 16,000.
The main trend that BTC has seen since November 6th is successive higher lows in both low and high timeframe charts.
The term “consecutively higher low” means when the last low point of an asset is higher than the previous low points.
Higher lows on the hourly chart of Bitcoin. Source: BTCUSD on TradingView.com
The latest correction Bitcoin saw after rising above $ 16,000 is still a higher low since November 8th. This means that the bull trend is likely to be intact, although a 3.5% decline likely shook off many highly indebted traders.
On the higher low formation, data in the chain shows that the ongoing Bitcoin rally is organic, led by real demand.
Willy Woo, the creator of Woobull.com, said:
“The best part is that not only does smart money come in, but NEW smart money as well. Orange line is the hourly rate of new investors that was not previously seen on the blockchain. It’s seriously bullish.”
Low liquidations on futures exchanges
According to data from Datamish.com, BitMEX and Bitfinex recorded short liquidations totaling less than $ 14 million immediately after the rally.
In previous cycles, when the price of Bitcoin rose or fell significantly, liquidations typically amounted to $ 100 million or more.
The data shows that it wasn’t a sudden short press that caused the price of Bitcoin to rise significantly. Instead, there is a high probability that it is a point-driven uptrend.
The coincidence of the minor liquidations between the futures exchanges and the locally driven rally makes the rally more sustainable than previous upward trends.