Retail Traders Propel Bitcoin to $69K, Shaking Up Short Sellers' Strategies

Retail Traders Propel Bitcoin to $69K, Shaking Up Short Sellers' Strategies

Bitcoin surged past $69,000, fueled by $613 million in small wallet purchases, as bearish traders faced $96 million in liquidations. Will this rally sustain?

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Bitcoin (BTC) experienced a notable increase, climbing to $69,482 on Friday. This surge was accompanied by data indicating that smaller investors significantly increased their holdings, contributing $613 million in February. Analysts suggest that this price movement might signal the start of a broader bullish trend despite indications of potential price consolidation.

The breakout above the $69,000 resistance has triggered substantial liquidations in short positions, amounting to approximately $92 million within a four-hour timeframe. Notably, about $96 million in total futures liquidations occurred, predominantly affecting bearish traders on platforms such as Bybit and Hyperliquid.

Smaller wallets have been actively purchasing during recent corrections, while larger whale wallets have seen limited activity, with significant outflows recorded. The short-term profit-ratio indicator for holders reached its lowest point since November 2022, reflecting subdued market sentiment. Should BTC maintain its position above $68,000, potential liquidity zones are identified at $71,500 and $74,000.

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