The Bitcoin (BTC) price is back above $7,000 Meanwhile, alternative cryptocurrencies have also been enjoying fruitful 24 hours, posting noteworthy advances.
Bitcoin's recent move to reclaim $7,000 resulted in a flurry of activity, causing significant losses for those holding short positions. BitMEX Within a single hour earlier on April 16, 2020, nearly $10 million in shorts were liquidated amidst the market's uptick.
In parallel, there are reports of significant Bitcoin withdrawals from exchanges, indicating that many traders are opting to hold onto their assets. block reward halving expected to happen in less than a month.
Bitcoin Makes a Comeback, Reascending Beyond $7,000
The Bitcoin The price of Bitcoin (BTC) has surpassed $7,000, marking a nearly 5% increase since the day's inception, though it’s yet to sustain any momentum beyond the $7,100 resistance.
Ever since hitting a low of $3,800 on March 12, 2020, the infamous 'Black Thursday,' Bitcoin Bitcoin has struggled to regain its initial 2020 position of $7,200, leaving the cryptocurrency trailing in year-to-date returns.
This latest price hike for Bitcoin has led to an avalanche of closures of short positions on BitMEX. Coinalyze Detailed data shows a substantial amount - $10 million - being liquidated in under an hour.
The speed was staggering... almost $10 million worth of shorts were wiped out... https://t.co/0xZLfgEt5R $BTC #Bitcoin #cryptotrading pic.twitter.com/SMb2yHCkOR
— Coinalyze (@coinalyzetool) April 16, 2020
With BitMEX’s high leverage, up to 100x, even slight movements in Bitcoin's spot price can result in a domino effect of liquidations for both long and short positions. On Thursday, longs were affected too, with Skew reporting $23 million liquidated on BitMEX at the time of reporting.
Holding with Halving in Mind?
This fresh burst in Bitcoin's price coincides with substantial Bitcoin withdrawals from exchanges. As the Bitcoin block reward halving looms in mid-May, anticipation suggests it may event provoke a noteworthy reaction in Bitcoin’s pricing.
Historically, halvings have been critical for Bitcoin's bull runs, frequently leading to new all-time highs in the year following the event. The previous record was in mid-December 2017, pushing Bitcoin to $19,800.
As previously reported According to Blockonomi, prominent figures like Mike Novogratz of Galaxy Digital remain vocal about their expectations bullish sentiments for Bitcoin. Enthusiasts are watching closely, hoping for a departure from the current sideways price action into a more sustained bull run.
To herald a true Bitcoin bullish phase, the digital currency needs to conquer the $7,500 barrier, which has been a formidable challenge in recent months. Sustained buying pressure could potentially initiate another rally toward this elusive target.
Green Day for Crypto Market
Not to be left behind, altcoins have also thrived in this period, with Ethereum (ETH) growing nearly by 10%. The top ten cryptocurrencies are all in the green, with XRP and Bitcoin Cash (BCH) increasing by 3% and 4%, respectively.
Bitcoin Cash (BCH) had its block reward halving recently and the offshoot Bitcoin SV (BSV) also experienced a 2.6% uptick. Post-halving movements for these cryptocurrencies have been challenging, compounded by network shifts as miners redirect hash power to Bitcoin, which retains its 12.5 BTC reward.
Because of BCH's unique difficulty adjustment in 2017, it experienced halving a month before BTC, leading to faster block times. Other cryptocurrencies like Litecoin (LTC) and EOS have also witnessed significant gains, rising by 9% and 3%, respectively.
