Cryptocurrency analysis company CryptoQuant analyzed the recent rise in Bitcoin’s price, highlighting the fundamental dynamics behind the ongoing market movement. According to the company’s latest analysis, one of the most significant factors in Bitcoin’s rise to the $81,000 level was aggressive short position liquidations.
According to CryptoQuant data, cumulative liquidation data, particularly on Binance, indicates that the rise was largely driven by the forced closing of short positions. After Bitcoin surpassed the $77,000 level, positions opened anticipating a decline were rapidly liquidated. These liquidations created additional buying pressure in the market, contributing to a further increase in price.
The analysis argues that the current rise is not merely a classic trend movement, but also an active “liquidity hunt” process. The critical question is what the market’s new target will be once short positions are cleared.
According to CryptoQuant, two main scenarios are on the agenda for the upcoming period. In the first scenario, the price is expected to continue rising, completely eliminating a large portion of the short positions in the market. In the second scenario, this rise could create “fear of missing out” (FOMO) among investors, leading to a rapid increase in new long positions.
Analysts, noting that the risk could shift at this point, point out that if long positions accumulate in the market, long liquidations may increase in the future. Such a development could pave the way for sharp and sudden corrections after the current rise.
*This is not investment advice.
