Bitcoin surged to $79,214, marking its highest price since February, driven by a significant short squeeze with a liquidation imbalance of 4,362%. This surge was fueled by declining oil prices and substantial inflows into U.S. BTC ETFs.
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Bitcoin's rise to $79,214 as per Binance not only marked the highest price level since February, but also triggered a cascade of short position liquidations. According to CoinGlass, the resulting liquidation imbalance became one of the most aggressive this month at 4,362%.
The move began amid declining oil prices, the S&P 500 holding at all-time highs, and a six-day streak of inflows into the U.S. BTC ETFs totaling $1.54 billion. However, the main "fuel" behind the push above $79,000 was not only buying pressure, but also the forced closure of bearish positions.
Liquidation heatmap in 1-hour, Source: CoinGlass
CoinGlass data reveals a critical divergence: out of $34.23 million in total Bitcoin liquidations within an hour, a massive $33.46 million came from short positions. This means that 97.7% of all losses were borne by bears betting against the rally. Overall, in the past 24 hours, total market liquidations reached $394.32 million, with the overwhelming majority again hitting short positions.
The final element in this setup is the abnormally negative funding rate, which persists despite the rally. According to CryptoQuant data, with Bitcoin at $78,400, funding dropped to -0.02% - meaning bears are aggressively pressing the market, paying a 0.02% premium every eight hours, or about 22% annually, just to maintain short exposure.
Bitcoin price action on afternoon April 22, Source:
Bitcoin reached $79,214 due to a combination of declining oil prices, all-time highs in the S&P 500, and a significant short squeeze.
A liquidation imbalance of 4,362% indicates a massive number of short positions were forcibly closed, contributing to the rapid price increase of Bitcoin.
There was a total of $1.54 billion in inflows into U.S. Bitcoin ETFs over a six-day period, which contributed to the bullish momentum.
Bitcoin's price has surged past $80,000 following Morgan Stanley's $138 million investment in a Bitcoin-tracking fund. The market sentiment is shifting, with traders balancing optimism for new highs against fears of a price drop.
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At the moment, BTC is consolidating around $79,000. As previously reported by U.Today, on the weekly timeframe, Bitcoin has opened a path toward $96,600 after breaking above the Bollinger Bands midline. Whether bears have enough resilience to stay in the market longer than price moves against them remains the key intrigue.