The Bitcoin (BTC) price faced the largest liquidations since 2021 of over $1.78 billion overleveraged positions, triggering a downfall from $101K. The token faced a 6% drop and marked the lows close to $94,000. Meanwhile, the price has bounced back as the sellers seem to have exhausted, pushing the token above $98,000 at the moment. The buyers are finding it difficult to keep up the trend above the levels, but a small push to certain levels may validate the beginning of a fresh ascending trend.
The spot markets help the token to maintain it’s volatility, which prevents the token from remaining within a sluggish range. However, the derivatives have a major impact over the current price of the asset. Besides, Bitcoin, which is the first choice of every trader dealing in futures or options, experiences respective price actions in case of long or short liquidations. After facing the highest long liquidations in the past couple of years, the token has a golden chance of liquidating shorts, which could push the price not only above $100K but form new highs above $105K.
The data from Coinglass suggests traders are betting on the plunging BTC price, but if the bulls manage to push it by another 2%.
The above chart shows that nearly a billion high-leveraged shorts have been piled up around $99,000. Hence, if the bulls manage to push the price by another 2%, these shorts are expected to get liquidated, pushing the price beyond $100K.
What’s next for the BTC price rally? Where could you expect the ATH for the current bull run?
A public company, Marathon Digital Holdings, has acquired an additional 11,774 BTC for $1.1 billion at an average price of nearly $96,000 per Bitcoin. On the other hand, MicroStatergy continues its buying streak of acquiring an additional 21,550 BTC worth over $2.1 billion. Meanwhile, Blackrock’s IBIT leads the spot ETF inflows and holds billions worth of BTC, suggesting the rising institutional interest over the token.
Considering all the above factors, it is pretty clear that the Bitcoin (BTC) price is backed majorly by the institutions and the derivative market fluctuations. With this, the prospects of the token remain bullish, triggering the higher target for the persisting bull run.
