Bitcoin surged over $3,000 in just four hours on July 19, sending shockwaves through the crypto market and leaving short traders in a nightmare scenario. The sudden uptick saw BTC/USD rise from $63,303 to $66,506, with the pair hitting an intraday high of $66,773 on Bitstamp.
Independent analyst Caleb Franzen noted that the recent streak of higher highs and higher lows indicated an uptrend behavior, with bulls regaining control over the price. This positive price action followed a run-up to just below $65,000 earlier in the week, as seller exhaustion and other factors fueled the rally.
Short traders who bet on a continuation of the correction suffered significant losses, with $40.83 million in short positions liquidated within four hours and a total wipeout of $131.65 million in 24 hours. CoinGlass’s Bitcoin liquidation heatmap showed that BTC was pushing through overhead ask liquidity, putting $83.38 million ask orders at risk of being liquidated in the short term.
Meanwhile, MN Capital founder Michaël van de Poppe highlighted that Bitcoin’s retail demand hit three-year lows, reflecting the current market sentiment. Despite consistent inflows into Bitcoin investment products from institutional investors, retail demand has been decreasing since the price hit all-time highs in March.
Market analysts believe that the real bull run for Bitcoin typically begins with massive buying volume from retail investors, which has yet to materialize. However, the longer-term outlook remains positive, with analysts forecasting a Bitcoin price above $200,000 once BTC enters a parabolic uptrend.
As always, readers are reminded that this article does not contain investment advice and that all investment and trading decisions involve risk. It is important for individuals to conduct their own research before making any financial decisions.