According to the latest data obtained, the rally of Bitcoin (BTC), the leading cryptocurrency, may not slow down anytime soon. There are many analysts who believe that BTC will reach the level of $48,000.
Critical Level in Bitcoin
If Bitcoin surpasses $45,000, a quick transition to $48,000 could be possible due to the limited supply between $45,000-47,000. Approximately 4% of the supply is around $48,000, which could indicate potential profits for those who bought at the peak of the first quarter of 2021. A few days ago, a whale added approximately 3000 BTC worth about $132 million to Binance, the leading cryptocurrency exchange in terms of volume, making a profit of approximately $23 million.
Throughout last year, this whale consistently made three BTC trades by buying at low prices and selling at high prices, resulting in a total profit of approximately $61 million with a perfect winning rate of 100%. BTC futures data on Binance Orderbook showed that short positions faced significant liquidations as prices rose and open positions decreased.
Short Transactions in BTC
This short-term squeeze covers a few unnoticed sell orders but met resistance in larger blocks. At the current position, there are notable offers and questions around the current price, with significant levels such as $44,500 and $46,100 as resistance, and $41,000 as support. The liquidation of short positions could create upward pressure on the price due to short sellers closing their positions and contribute to potential upward momentum.
However, resistance at key levels could pose challenges for further price gains because these levels have historically attracted selling interest. Also, the volume in which BTC is traded has dropped significantly. At the time of writing, BTC was trading at $44,326.57 and its price had increased by 1.93% in the last 24 hours. However, resistance levels and decreasing trading volume, along with liquidations in short positions, could make it difficult for the price to rise.