Bitcoin's price may reach an all-time high (ATH) amidst escalating $118K liquidations.
In the ever-evolving world of cryptocurrency, Bitcoin finds itself poised at a critical juncture. The digital currency is inching closer to the $118,000 mark, a level that carries significant importance for its continuation.
This development comes amidst a potential short squeeze, with major institutions behind large Bitcoin derivatives positions potentially playing a significant role. These institutions include firms managing Bitcoin ETFs like BlackRock, with $18 billion AUM in its Bitcoin ETF IBIT, corporate holders such as MicroStrategy, and institutional traders using perpetual futures and options on regulated exchanges like Cboe Clear U.S.
JPMorgan's latest report reveals that 59% of Bitcoin portfolios are institutionally held, with a 10% allocation. The institution-driven growth in perpetual futures and options volume, approaching $10 trillion annually, amplifies these market dynamics.
Such a short squeeze could lead to a breakout, propelling Bitcoin into new all-time-high territory. Liquidation heatmaps show a dense cluster of short liquidations beginning at $118,000 and extending toward $119,000. These liquidation-driven moves could accelerate rapidly, adding momentum to existing bullish flows.
Sell-pressure indicators suggest a possible vertical accumulation phase as the price progresses higher. A breakout and close above $118,000 could lead to a liquidation cascade, further fuelling Bitcoin's upward trajectory.
Elsewhere in the cryptocurrency landscape, Wormhole has experienced a trading boom following a tokenomics upgrade. The price of Wormhole has surged 22%, underscoring the impact of such upgrades on the market.
The derivatives markets add significance to the $118,000 level for Bitcoin. As the digital currency continues its approach, investors and traders alike will be watching closely to see if Bitcoin can break through this barrier and embark on a new chapter of growth.
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