Bitcoin’s social sentiment remains neutral, indicating potential for a rally to $70,000 and beyond. However, the currency’s recent 8% gains have resulted in $134 million in liquidations over the past 24 hours.
Bitcoin’s price rally appears unstoppable as the leading digital currency surged another 8%, inching closer to its all-time highs. Currently, Bitcoin is trading at $68,200, boasting a market cap of $1.340 trillion. This week alone, BTC’s gains have surpassed 22%.
Bitcoin’s Market Value Nears All-Time High
Insights from on-chain data provider Santiment reveal that Bitcoin’s current market value of $68.0K is remarkably close to its all-time high (ATH) of $68.6K, showing a difference of just 0.9%. Despite traders anticipating a surpassing of this value soon, overall sentiment remains relatively neutral compared to previous bullish cycles.
In contrast to meme coins and other altcoins experiencing recent surges, Bitcoin’s neutral sentiment offers a favorable scenario for sustaining a rally. This sentiment, coupled with trader disbelief, suggests potential for liquidation of short positions, potentially propelling a rally beyond $70K and further.
It’s crucial to monitor sentiment as Bitcoin approaches its anticipated all-time high, as crowd perceptions can swiftly shift following significant resistance breaches. Reports from Santiment indicate that market movements often counter traders’ expectations. Additionally, realized profits from Bitcoin have surged to a three-year peak, indicating substantial rewards for average traders who have held onto their assets.
According to Liquidation data from CoinGlass, over $134 million in liquidations occurred on the Bitcoin network, with nearly $105 million in short liquidations taking place.
Notable Trends in the Bitcoin Market
On-chain analyst Checkmate has observed a significant trend in the Bitcoin market, highlighting the initiation of all-time high (ATH) distribution by long-term Bitcoin holders. Approximately 40-50% of this distribution can be attributed to the Grayscale Bitcoin Trust (GBTC), showcasing the strategic moves of HODLers in understanding market dynamics and implementing classic investment strategies of buying low and selling high.
Like clockwork, long-term #Bitcoin holders have started their ATH distribution.
There is the nuance that a large proportion of this ~40-50% is from GBTC, but it goes to show that there are HODLers who can and do read the market very well.
Buying low, selling high. pic.twitter.com/Q6kGQHoOxR
— _Checkɱate 🟠🔑⚡☢️🛢️ (@_Checkmatey_) March 4, 2024
Sell Signal Triggers Caution Among Traders
Crypto analyst Ali Martinez reports that the TD Sequential indicator has signaled a sell indication for Bitcoin on the 4-hour chart.
Courtesy: Ali Martinez
Historically, following such signals since February 15, Bitcoin’s price has declined by 1.5% to 4.7%. This pattern warrants close observation for short-term traders. Additionally, with Bitcoin holders currently in 100% profit, there’s a possibility of profit booking on the horizon.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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