Bitcoin recovered from its sideways trading earlier in the week, surpassing $57,000 for the first time since December 2021.
Bitcoin recovered from its sideways trading earlier in the week, surpassing $57,000 for the first time since December 2021.
Bitcoin’s advances continued on Wednesday, reaching intraday highs of $57,790 at press time. The price of the flagship cryptocurrency last rose 3.27% to $57,746, according to CoinMarketCap data.
Bitcoin (BTC) faces a critical test on its path to recovering from its all-time high of $69,000, set in November 2021. According to In the block According to data, 1.49 million Bitcoin addresses purchased 432,920 BTC at prices ranging from $56,961 to $67,413, with an average of $60,330.
This represents approximately 3% of Bitcoin holders who may attempt to sell once Bitcoin reaches its breakeven price, creating selling pressure.
In the event of a BTC price correction, the next key support lies between $55,134 and $56,961, where 991,220 addresses purchased 513,730 BTC at an average price of $56,036, according to data from IntoTheBlock.
However, the danger of a massive sell-off looms if Bitcoin loses the $56,000 level. According Aliwho cited Coinglass’ Bitcoin liquidation heat map, $300 million in long positions are at risk of being liquidated if BTC falls to $55,900.
This scenario can cause a cascading impact, as liquidations can increase selling pressure and drive the price down.
Bitcoin, the first and largest cryptocurrency, has added $800 billion to its market capitalization as of January 1, 2023. Bitcoin’s market capitalization was around $320 billion at the beginning of 2023 and has since grown to $1.13 trillion, making it the tenth largest asset in the world.
Bitcoin is now less than 20% from its all-time high of $68,982.20, set in November 2021. Investors expect it to hit a new high following the launch of ETFs and the network’s upcoming halving event. , which has traditionally laid the foundation for a significant increase in the following months.
