KEY POINTS
- Bitcoin short position liquidations "significantly weakened the bearish forces"
- "The market may undergo an overall accelerated upward revision," said Bitget Research Chief Analyst Ryan Lee
- Bitcoin was trading in the green zone at $41,687.35 as of 710 a.m. ET on Monday
Bitcoin exploded late Sunday night and continued to trade above the $41,000 price level until Monday, which according to an analyst could serve as the new starting point for the incoming bull run.
Bitcoin, the world's largest crypto asset by market capitalization, saw a nearly 15,000 gain over the past month and traded above $41,000 early Monday morning, a figure last seen in April 2022 before the Terra ecosystem spectacularly collapsed.
"Today, Bitcoin has surged past the $40,000 milestone and is currently experiencing accelerated upward momentum. This $40,000 price level might serve as the new starting point for the forthcoming bull market," Bitget Research chief analyst Ryan Lee said in a note sent to International Business Times.
The king of crypto pushed through the $41,000 price level without much resistance with short positions on BTC contracts immediately liquidating as much as $54 million.
Lee explained the liquidations significantly weakened the bearish forces, and forecasted that the market may go through an accelerated upward revision.
"In the crypto market, Bitcoin has surpassed $40,000 without encountering significant resistance. Within 24 hours, short positions on Bitcoin contracts worth $54 million were liquidated, significantly weakening the bearish forces. The market may undergo an overall accelerated upward revision. Furthermore, a new asset category within the Bitcoin ecosystem, ORDI, surged over the weekend, indicating a strong speculative sentiment in the market," the chief analyst told IBT.
He also discussed the market condition at the macro level, saying "anticipation of interest rate cuts by the Federal Reserve has propelled commodity prices higher, with gold hitting historic highs and Bitcoin rebounding by nearly $15,000 over the past month. Given the potential for a recession in the US economy, fund managers are predicting an 80% consensus level for a trend of interest rate reduction in 2024, marking the highest consensus level ever recorded. The crypto market has already factored in this positive news."
Bitcoin was trading in the green zone at $41,687.35 as of 710 a.m. ET on Monday, with a 24-hour trading volume up by 90.76% at $30.03 billion.
BTC's price action has represented a 5.5% decrease in the past 24 hours and a 12.2% gain in the last seven days.
Data from CoinMarketCap showed that its circulating supply stands at 19.56 million BTC, while its value continues to climb by 5.30% at a $813.98 billion market cap.
