Key Points
- Bitcoin surpassed the $102,000 price level, achieving a $2 trillion market cap.
- A total of $131.71M in BTC short positions were liquidated over 24 hours.
Bitcoin, the leading digital asset, has once again surpassed the $102,000 price level, reaching a market cap of $2 trillion. At the time of writing, the cryptocurrency is trading at $102,435.34 after a 4.25% price surge in the last 24 hours. This is the first time since December 18th that Bitcoin has claimed a price above $102,000.
Data shows that a monumental $131.71M in BTC short positions were liquidated over 24 hours, compared to $67M in long positions. In the past 12 hours alone, $129.26 million was liquidated, with $38.13 million in longs and $91.13 million in shorts.
Bitcoin Exchange Liquidation Impact
The Bitcoin exchange liquidation heat map indicates that if Bitcoin soars above $106K, a substantial $1.01 billion in BTC shorts will be wiped off, further pushing the price of the market leader higher. Conversely, if Bitcoin loses $100K, a massive $1.35 billion in BTC longs will be erased, while if the cryptocurrency drops to $96,000, a monumental $4.10 billion will be wiped off.
Bitcoin Supply and Price Rally
Bitcoin reporter Vivek confirmed in a post on X (previously Twitter) that the supply of Bitcoin on exchanges has dropped to an all-time low. This means that platform users have withdrawn their money to safer alternatives like hardware wallets, intending to keep their coins for a longer term. He predicted a “supply shock” for Bitcoin is incoming, which could put the cryptocurrency on a bullish path towards a new all-time high.
According to CoinMarketCap data, the current all-time high for Bitcoin stands at $108K, achieved over 20 days ago. If the bullish momentum surrounding Trump’s inaugural day is maintained and US spot BTC exchange-traded funds continue to witness inflows, BTC could potentially hit a new ATH before January 20th.
Bitcoin Price Analysis
The chart below shows the Relative Strength Index (RSI) for Bitcoin, which reads a value of 62.6, confirming that the bulls are overall in charge of the digital asset’s price action. Moreover, the gradient of the line suggests that higher prices are definitely possible, as chances of BTC continuing its move towards $110K are significantly high.
