- Bitcoin has rallied 6% recently to near $48,000, attacking a key resistance level that if broken could lead to new all-time highs.
- There is significant sell-side liquidity above $50,000 but limited buy-side support below $43,000, meaning shorts could get squeezed if bulls push above $50k.
- Flows into new US spot Bitcoin ETFs have been strong, marking the third highest daily total since launching in January, signaling building institutional demand.
Bitcoin has seen strong gains recently, putting pressure on short positions as the price nears $50,000. The leading cryptocurrency is showing signs of breaking out for further upside.
Recent Bitcoin Price Action Points to Strength
Over the past day, Bitcoin has rallied 6%, taking it close to $48,000. The move comes after a period of consolidation in a range between approximately $38,000 and $45,000.
Analysts say Bitcoin is now attacking the $48,000 level again and not much stands in the way of new all-time highs if it can break above this hurdle. The current price area represents a moment of truth according to some.
Warning for Shorts as Upside Liquidity Lacks Resistance
According to analysis of Binance‘s order book, there is significant sell-side liquidity stacked between the current price and $50,000, but comparatively little buy-side support below $43,000.
This suggests shorts could get squeezed if bulls manage to push Bitcoin above $50,000, as there is then little resistance toward $55,000. Traders considering short positions should thus be prepared for such a scenario.
Spot Bitcoin ETF Flows Support Bull Case
Flows into the newly launched spot Bitcoin ETFs in the US have been encouraging for bulls. While Grayscale’s GBTC saw outflows as expected, the remaining spot ETFs saw large inflows, marking the third highest daily total since launching in January.
The strong demand for spot Bitcoin exposure through these regulated investment vehicles points to building institutional interest.
Conclusion
With Bitcoin appearing to break out of its recent range, the path of least resistance seems to be to the upside. Shorts may get squeezed if key resistance levels are exceeded, and there are early signs of growing institutional demand. The technical picture and fundamentals thus seem aligned for further gains.
