#Bitcoin It has finally reached the long-awaited $65,000 level, which represents a critical resistance point where significant market activity is unfolding. This level not only holds psychological significance, but is also associated with a series of short positions that have been accumulating over time. As Bitcoin breaks through this barrier, selling pressure has begun to subside, allowing for further upward momentum.

Short term liquidation

The $65,000 level has long been considered a major resistance point among crypto traders. As Bitcoin breaks through this level, a wave of short liquidations will occur, especially between the $65,000 and $66,200 price range. This liquidation could reduce the selling pressure on Bitcoin, allowing it to rise more freely.

Short liquidations occur when traders who bet against Bitcoin (short sellers) are forced to exit their positions, often causing the price to rise as they cover their losses. As Bitcoin continues to move past these liquidation zones, the market may find fewer obstacles on its way up.

The importance of daily closing above $65,000

For Bitcoin to maintain its bullish trajectory, a daily close above $65,000 is crucial. Such a close is likely to boost investor confidence, encourage more long-term positions and potentially lead to further gains. However, failure to hold above this level could lead to short-term corrections as traders book profits.

A daily close above $65,000 would signal that the market is ready to test higher resistance levels, with $70,000 as the next major target. If the price holds above this level, a new phase of bullish momentum could follow.

Key Risks and Considerations

While market sentiment is currently positive, investors should remain wary of potential risks. In the short term, volatility is likely to increase, especially as traders look to lock in profits at these critical levels. A sudden pullback is not out of the question, so managing risk and staying flexible with strategies is crucial.

In conclusion, Bitcoin’s breakout above $65,000 and the start of short-term liquidation has created a positive outlook for the market. However, whether this rally will continue depends largely on whether Bitcoin is able to close above $65,000 on a daily basis. If it is able to do so, the next major target at $70,000 could soon come into focus.