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Bitcoin price crosses $20K as daily crypto short liquidations pass $400M

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 174 Views

BTC price action sees its highest levels since the start of October on the back of a broader risk-asset rally.

Bitcoin (BTC) spiked above $20,000 on Oct. 25 as risk assets benefited from new U.S. dollar weakness.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin taps three-week highs

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting highs of $20,191 on Bitstamp.

The move came in tandem with rising United States equities, these in turn buoyed by a declining U.S. dollar, which lost traction against major trading partner currencies on the day.

With that, Bitcoin saw its first trip above the $20,000 mark since Oct. 7.

“Finally, the volatility will kick in,” Michaël van de Poppe, founder and CEO of trading firm Eight, reacted.

“Bitcoin is ready for that relief run. Long and strong.”
BTC/USD 1-day candle chart (Bitstamp). Source: TradingView

Trader and analyst Il Capo of Crypto, meanwhile, flagged BTC outperforming altcoins in terms of gains, albeit with no end in sight as of yet.

“There’s fuel to keep going,” he tweeted.

Data from monitoring resource Coinglass meanwhile showed the extent to which the market had been short on the day.

Short-position liquidations for Bitcoin alone topped $165 million on the day, a multimonth high, with the tally still increasing at the time of writing.

Cross-crypto short liquidations amounted to more than $400 million.

Crypto liquidations chart. Source: Coinglass

Dollar puts up a fight after swift losses

Following the action, analytics service Material Indicators tracked shifting support and resistance on the Binance order book.

Related: Analyst puts Bitcoin price at $30K next month with breakout due

The $20,000 zone had been marked by a cluster of sell orders totaling in excess of $110 million, with bulls managing to make a considerable dent with the impulse.

“FireCharts shows the remaining $83M of the $112M BTC sell wall we saw this morning was just moved up,” it confirmed alongside a chart showing a heat map of trades.

BTC/USD order book data (Binance) chart. Source: Material Indicators/Twitter

In a potential knock to crypto, however, the U.S. dollar index (DXY) showed signs of recouping its daily losses at the time of writing, attempting to clinch 111 as support.

“$DXY is finally breaking down today. Expecting bids in the 109.50-110 range,” Justin Bennett, founder of crypto education platform Crypto Academy, commented.

U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.


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