Bitcoin (BTC) surged above $65,000, hitting an intraday high of $66,482. The cryptocurrency has hit a resistance zone and the bullish trend will be confirmed if BTC maintains price action above $66,000.
Santiment, a blockchain analytics platform, noted that this was the first time since September 27 that Bitcoin surpassed the $66,000 price mark. Short liquidations over the past 24 hours were the main driver behind this surge in BTC prices. Santiment explained:
“As traders with short positions are forced to close out (voluntarily or via margin calls), prices rise rapidly, creating even more bullish momentum.”
Additionally, Bitcoin trading volume also hit a two-week high as BTC began to spike starting at 15:35 UTC, Monday. It is important to note that DeFi liquidations for Bitcoin saw their second-highest spike in over three months in the current cycle.
Santiment points out that the last time a liquidation of this magnitude occurred, “Bitcoin had a 20-day rally of +29%.” The blockchain analytics platform believes another strong rally is coming as historically, large DeFi liquidations have led to higher Bitcoin prices.
Bitcoin at $70,000?
On Monday, Bitcoin predictions of hitting $70,000 or more rose to their highest level since August, suggesting investors are betting on a breakout for the leading digital asset as trading volumes also surged.
According to CoinMarketCap, Bitcoin is trading at $65,299, up 2.5% over the past 24 hours. The market leader has gained around 4.6% over the past week, but BTC is still 11.46% below its all-time high of $73,750, which was reached in January this year after Bitcoin spot exchange-traded funds (ETFs) were approved in the United States.
