Analyst expects a bear storm to follow recent crypto rally if price gains are not sustained as liquidations hit a 15-month high
Despite the rise in prices, the crypto market could be in for another bear storm, with futures market short liquidation data hitting a 15-month high, as reported by a Cryptoquant On-Chain Analyst,
Writing in a QuickTake on the crypto market intelligence platform, J.A. Maartunn stated that the latest liquidations data suggests that bulls have their work cut out for them if the latest crypto rally is to be sustained.
He noted that around the opening time of the US stock markets, crypto short positions began to roll down. Overall, around $320 million worth of short liquidations have been recorded, making the day an important trading day.
Given this reason, he added that it is very important that bulls have enough strength to maintain the price of Bitcoin (BTC) above $20,000 and turn the price level into support. This is especially as the monthly close is near.
“The main question for now: Will the bulls have enough strength to hold the price above the $20000-price level and turn it into support? This will be very important, as the monthly close will take place in a few days,” the analyst said.
Crypto market rally still yet to abate
While the analyst expects a bear storm if the current rally is not sustained, prices in the crypto market have continued to rise. The market has once again reached a capitalization of over $1 trillion.
Along with BTC, Ether (ETH) is also on the rise and has contributed to the massive short liquidations. ETH Enhanced As reported earlier by U.Today, massive short positions worth over $105 million shook off its wake, at an intraday high of $1,512.
