Bitcoin (BTC) rallied to $20,745 per coin on Wednesday, reaching its highest level since September, a jump of roughly 7 percent in 24 hours.
A massive liquidation of shorts of the cryptocurrency king, totalling $550 million USD, triggered BTC price spikes. Traders liquidated a total of $704 million in shorts on Tuesday, with Wednesday reaching an additional $275 million, Coinglass found.
Many crypto analysts took to social media to express their excitement about the latest liquidation.
Social Media Raves about Bitcoin
Trade analyst, investor, and trader Titans of Crypto stated that the two-weekly chart showed bullish trends, citing the relative strength index (RSI) had crossed the long-term trend line and 14 simple moving average (SMA).
“The combo is playing right now. We’ll have to wait till the 7th November for confirmation,” the user said.
#Bitcoin Bullish Combo Signal (2W)
On the 2 weekly chart :
1/ RSI crosses the long term trend line.
2/ RSI crosses the 14 SMA.The combo is playing right now.
We’ll have to wait till the 7th November for confirmation. pic.twitter.com/rCYt4bi6jG— Titan of Crypto (@Washigorira) October 26, 2022
Crypto analyst Josh also found evidence of the long-term bullish trend, stating Bitcoin had broken out of its downward trend and formed a bullish divergence, or a chart pattern where prices fall to lower lows but technical indicators reach higher lows, revealing strengthening market forces.
#Bitcoin breakout + bullish divergence. #BTC 👀 pic.twitter.com/12MhrvbkU8
— Josh (@CryptoWorldJosh) October 26, 2022
Cauê Oliveira, lead on-chain analyst for Brazilian media outlet Block Trends, stated the liquidation event at FTX was the largest “in its entire history.”
Yesterday we had the biggest shorts liquidations event at FTX in its entire history! 🚨
High leverage market pushes bears into the worst liquidation event of this bear, even with a price change of only +/- 5%.#Bitcoin pic.twitter.com/2I9yFO6Hq9
— Cauê Oliveira 💊⚡ (@caueconomy) October 26, 2022
Key figures from Coinglass revealed that over $1 billion in liquidations took place on Tuesday, with Bitcoin and Ethereum posting $500 million and $476 million, respectively. FTX held the highest number of liquidations totalling $862 million, 77 percent of which were shorts.
