The price of Bitcoin (BTC) saw a dramatic upswing in the cryptocurrency market, reaching a high of $45,000, which led to a large number of liquidations. $145 million worth of liquidations occurred in the market, which was a shocking development that took many by surprise. Most of these belonged to traders who had taken short positions at the beginning of 2024, betting on a market reversal, only to be carried away by unanticipated bullish momentum.
This abrupt and strong price movement on Bitcoin is a definite hint that the bull run will continue, indicating a strong start to the year. A break over $45,000 not only bodes well for market sentiment but also reinforces the notion that the bull market is here to stay. The expected approval of a spot Bitcoin ETF in the second week of January is the next big development.
Despite their optimism, investors should prepare for volatility because an ETF approval might trigger a “sell the news” event in the market. These kinds of events usually happen when an asset’s price increases in front of a favourable development and then declines as traders take profits following the favourable development.
Bitcoin’s price performance
Regarding the price performance of Bitcoin, it is clear that the price has been rising. The $45,000 barrier level was clearly broken above on the chart, and it is now a support zone. Bitcoin has previously faced strong resistance at this level, so breaking over has been encouraging.
The price is currently far above the 50-day and 200-day moving averages, indicating a strong uptrend, according to the chart’s moving averages, which show a bullish pattern. In particular, the 50-day moving average seems to be providing the market with dynamic support and persistent bullish pressure.
Volume bars demonstrate a spike in trading activity at the breakout mark, indicating that the move had momentum. The significant purchasing pressure that has followed the recent price spike is reflected in the Relative Strength Index, which is moving upward and into overbought territory.
