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$25K Bitcoin Breakout: Could It Signal Bear Market’s End?

22. Februar 2023 admin 0 comment

$25K Bitcoin Breakout: Could It Signal Bear Market’s End?

• Bitcoin’s price rose above $25,000 briefly before slipping back under the key psychological and technical area.
• The move to $25k was fueled by the massive liquidations recorded over the past few days.
• Bitfinex analysts suggest that recent price movements could be indicative of a bottom and are indicative of „the latter stages of a gruesome bear market.“

Bitcoin Breaks Above $25K

Bitcoin’s price broke above $22,500 to new highs above $25,000 amid the hunt for short stops and liquidations. This move resulted from short liquidations of over $155 million, however the benchmark crypto did not hit a crucial daily candle close at that zone.

Short Liquidation Fueled Rally

Bitfinex analysts suggest that Bitcoin’s breakout from the $22,500 price level to highs above $25,000 was fueled by the massive liquidations recorded over the past few days. They noted in a report that this 10% upswing and green weekly candle could be indicative of a bottom and are indicative of „the latter stages of a gruesome bear market.“

Price Outlook Moving Forward

Commenting on BTC price outlook and what could lie awake in coming weeks, Bitfinex analysts said in a statement that profit-taking in the wake of the recent rally may send Bitcoin back below $24,000 in the week ahead. They also suggested that historically this type of action has resulted in ranged price movement due to both longs and shorts being wiped off simultaneously.

Sharp Pullback Caught Out Bullish Speculators

The analysts also noted that another sharp but short-lived pullback caught out some bullish speculators who were betting on a push to upper $25,000-$26,000s on Thursday as evidenced by spike in long position liquidations on that day.

Long Term Price Forecast

Looking ahead into future weeks or months it is difficult to predict exactly where Bitcoin prices will go but according to Bitfinex analysts it is likely for there to be continued range bound activity until either buyers or sellers have been exhausted from these levels.