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Why Did Bitcoin Rise Above $81,000? Will the Bullish Trend Continue or Will Bears Take Over?
CryptoQuant, a cryptocurrency analytics company, analyzed Bitcoin’s recent price increase, highlighting the fundamental factors behind the current market movement. According to the company’s latest analysis, one of the most significant factors behind Bitcoin’s rise to $81,000 was the aggressive liquidation of short positions.
According to data from CryptoQuant, aggregate liquidation data, especially on Binance, indicates that the rise was largely driven by forced closures of short positions. After Bitcoin surpassed the $77,000 level, positions opened in anticipation of a decline were quickly liquidated. These liquidations created additional buying pressure in the market, contributing to further price growth.
The analysis states that the current rise is not just a classic trend movement, but an active “liquidity search” process. The key question is what the next market target will be after the short positions are closed.
According to CryptoQuant, two main scenarios are considered for the upcoming period. In the first scenario, further price growth is expected, which will lead to the full closure of a significant portion of short positions in the market. In the second scenario, this rise may trigger “fear of missing out” (FOMO) among investors, leading to a rapid increase in new long positions.
Analysts note that risks may change at this stage, indicating that if long positions accumulate in the market, the number of long liquidations may also increase in the future. Such a development could pave the way for sharp and sudden corrections following the current rise.
See also: "Michael Saylor and Strategy Signal Possible Bitcoin Sales — Market Reacts with Drop"
