Bitcoin jumped above $72,000, triggering $30 million in liquidations while profit-taking sentiment cooled.

Bitcoin’s recent price recovery has caught the attention of traders, with the price bouncing back above the $71,000 level after last week’s massive decline. Buyers subsequently liquidated their positions significantly.

The price hit a low of 65,000 won. However, sentiment has cooled and BTC price has accumulated near support levels, triggering a strong upward surge that is now heading towards $72,000.

Bitcoin liquidation increases exponentially

Just three days ago, the price of Bitcoin was hovering around $65,500, sparking discussions about the end of the price correction phase. However, this price level attracted buyers and resulted in large-scale accumulation. According to CryptoQuant, the initial spark of this recovery came from the realization of massive profits worth $2.7 billion.

This has helped keep the Bitcoin price stable as people are making profits while also reducing selling pressure. This happened because people who had owned Bitcoin for a short period of time stopped selling at a loss when the price fell. They decided to wait instead, which prevented prices from falling further and allowed the market to stabilize.

Another important reason for Bitcoin getting back on track is the issuance of new USDT (Tether). There is a clear correlation between the value of USDT and the price of Bitcoin. More USDT being put into the market means there is more money available to buy things, which generally drives the price of Bitcoin higher.

Moreover, the Bitcoin ecosystem has witnessed significant inflows into hoarding addresses, with their reserves reaching all-time highs. This trend points to growing confidence among long-term holders and investors who are increasingly moving their assets into wallets known for accumulating and holding Bitcoin rather than engaging in frequent trading. This behavior suggests an optimistic outlook for Bitcoin’s long-term value and further contributes to its positive momentum. In the last four hours, the BTC price recorded liquidations worth approximately $29 million, of which sellers sold $28 million worth of BTC contracts.

Finally, changes have been observed in the behavior of long-term investors, particularly in their distribution patterns. Distribution is noticeably weakening, meaning long-term holders are selling Bitcoin at a slower rate than before. This change is very important because it reduces the amount of Bitcoin available on the market, creating scarcity that can push the price up.

Some analysts believe that the upcoming halving event may not have a significant impact on the BTC price. According to Insight, flows into Bitcoin exchange-traded funds (ETFs) are expected to remain high leading up to the Bitcoin halving event later this month.

Bitcoin ​​halving, a significant event that occurs every four years, is expected to occur on April 20. As reported by Santiment, the daily trading volume of the top seven ETFs reached $3.19 billion.

The company also speculated that both ETF and on-chain trading volumes are likely to decline following this incident. Yield App’s Lucas Kiely also suggested that acquiring Bitcoin through an ETF could reduce the likelihood of significant volatility after the halving.

What’s next for BTC price?

Bitcoin price has crossed above a symmetrical triangle formation in recent hours, indicating strong buying momentum from buyers. Buyers are aiming to retest ATH this week and push it above the $72,000 level. At the time of writing, BTC price is trading at $72,267, surging more than 4.5% in the last 24 hours.

The 20-day Exponential Moving Average (EMA) has been steadily rising and currently stands at $69,167, while the positive Relative Strength Index (RSI) suggests things are in favor of the bulls. A decisive break above the ATH of $74K would send the price towards $80,000.

However, if the price declines from the triangle’s descending trendline and falls below the 20-day EMA, this could indicate an extended sideways move within the triangle, implying a shift of momentum to the downside. A break below the triangle could lead to a decline towards $61,000 and then towards the 61.8% Fibonacci retracement level of $59,000.