Bitcoin Faces Key Ichimoku Cloud Resistance Amid $220M in Short Liquidations

Summary: Bitcoin is currently testing resistance from the Ichimoku Cloud as it shows strong gains, with significant pressure on short sellers reflected in recent liquidation data.

Key Takeaways

Bitcoin's price continues to trend upward, navigating within a tight range of $87,186 to $93,928.
Over the past 24 hours, Bitcoin has surged around 6.5%, contributing to a weekly gain of approximately 6.8%.
The price is encountering crucial resistance at the Ichimoku Cloud, particularly at $91,473, which is essential for a continued bullish trend.
Liquidation data indicates that short sellers are facing significant pressure, with about $220.8 million in short positions being liquidated recently.

Bitcoin BTC

Bitcoin Price Analysis

Bitcoin is showing a notable attempt to recover from its November declines, currently testing the Ichimoku Cloud’s lower boundary at $91,473. This level serves as the first significant resistance since it marks the transition from bearish to neutral conditions.

Bitcoin 1-Day Price Chart

Until Bitcoin manages to secure a full candle close above this cloud base, its overall trend bias remains cautious. Immediate resistance can be found at the red baseline at $94,018, and further resistance is positioned at the cloud's upper boundary at $98,470.

On the support side, the blue conversion line provides vital short-term backing, located just below the current price. If Bitcoin encounters a downside momentum shift, this conversion line will act as the first support level to monitor.

The Relative Strength Index (RSI) is showing mild support for bullish momentum, moving out of bearish territory and trending upwards toward a neutral range. Thus, Bitcoin finds itself at a pivotal point—maintaining momentum above the Ichimoku Cloud could confirm its upward trajectory, while failure to stay above the conversion line may jeopardize its recovery efforts.

Bitcoin Liquidation Data

Data indicates that Bitcoin's recent ascent has primarily pressured short sellers. In the last 24 hours, total liquidations reached about $237.4 million, including about $220.8 million from short positions, compared to $16.6 million from long positions.

Bitcoin Liquidation Data

This pattern continues on the 12-hour chart, showing approximately $74.8 million in liquidated positions, with roughly $69.2 million coming from shorts and a mere $5.6 million from longs. This emphasis on short liquidations signals that traders who bet against the rally are forced to cut their positions as prices rise.

Short-term data reflects a similar trend but on a smaller scale. In the past 4 hours, about $1.86 million was liquidated, split between $899,800 in longs and $960,000 in shorts. The 1-hour window indicates nearly $104,000 in total liquidations, predominantly from shorts, totaling around $102,000.

Overall, this liquidation data reinforces that Bitcoin’s price rise is boosted by a series of short squeezes across various timeframes.

Disclaimer: This content is for informational purposes only and should not be regarded as financial advice. The opinions presented in this article represent the author’s perspective and do not necessarily reflect The Crypto Basic's viewpoint. Always conduct thorough research before making investment choices. The Crypto Basic is not liable for any financial losses.