Bitcoin BTC/USD briefly touched $89,864 in early European trading hours, marking a notable surge that saw the cryptocurrency rise 6% in the past 24 hours before stabilizing around $87,600.
What Happened: Speaking with Benzinga, experts say that minimal sell pressure and robust demand could drive the price even higher and that the rally reflects Bitcoin's growing momentum as it closes in on the $90,000 milestone.
Ethereum ETH/USD also surged, reaching a peak of $3,424 before settling at $3,300, up 3% in the past day.
The rally in Bitcoin’s price also brought with it a wave of volatility that affected both long and short traders.
According to data from CoinGlass, the crypto surge came with significant liquidations, totaling $975.53 million in the past 24 hours alone.
The liquidation breakdown shows that long positions accounted for $513.40 million, while short positions saw $462.12 million in losses.
In a note to Benzinga, Bitfinex analysts noted that despite Bitcoin’s new highs, the volume of profit-taking remains relatively low, with fresh demand helping absorb minor selling pressure.
They attributed this demand partly to the sustained inflows into U.S.-listed Bitcoin ETFs, which recorded a remarkable $2.28 billion in net inflows in the three days following the recent U.S. presidential election.
What Experts Are Saying: "We appear to be entering a new phase where the volume of profit-taking when BTC hits an all-time high is notably lower," the Bitfinex analysts said, highlighting that the market's ongoing price discovery process indicates a higher "fair value" for Bitcoin.
Alex Kuptsikevich, a market analyst at FxPro noted that the total cryptocurrency market cap has nearly reached $3 trillion, an all-time high last seen three years ago.
Kuptsikevich said that the current rally is being fueled by the liquidation of short positions across major cryptocurrencies, particularly Bitcoin.
"The first cryptocurrency soared almost 10% in 24 hours, coming close to $90,000, although only a little over a day ago, it tried to consolidate at $80,000," he observed.
According to Kuptsikevich, this bullish momentum has strengthened expectations that Bitcoin may soon target the $100,000 to $110,000 range, potentially within weeks.
Katie Stockton, founder and managing partner of Fairlead Strategies, emphasized the significance of Bitcoin's recent breakout.
"Bitcoin confirmed its breakout above trendline resistance, resolving a seven-month corrective phase higher in an intermediate-term bullish development," Stockton stated in a note to Benzinga.
She noted that the breakout points to an aggressive measured move target of approximately $98,800, derived from Bitcoin's 2023-2024 uptrend projected from the August low.
While Stockton remains bullish over the intermediate term, she advised caution in the short term, suggesting a possible period of consolidation given "short-term signs of upside exhaustion."
Ethereum also appears poised for further gains, according to Stockton.
The second-largest cryptocurrency recently cleared its 200-day moving average and that it could propel toward $4,000, with initial support now around $2,780.
What’s Next: As Bitcoin and Ethereum edge closer to key psychological levels, these developments will be explored further at Benzinga's Future of Digital Assets event on Nov. 19.
Read Next:
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
