Bitcoin Jumped to $69K, But Analysts Warn of Strong Resistance Ahead

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After a week of heavy selling, Bitcoin price has finally bounced back strongly, jumping 6% to to its previous 2021 high near $69,000. The sudden move forced bearish traders to close short positions, triggering total liquidations of about $571 million.

Despite this strong recovery, analysts say it is too early to confirm a long-term trend reversal, as key resistance levels are still intact. 

Crypto Liquidation Driving Bitcoin Price Rally

Today’s crypto market rally was not driven by bullish news or new regulations. The main reason was forced liquidations. In the past 24 hours, more than 132,000 traders were liquidated, with total losses reaching about $571 million.

Bitcoin alone saw around $231 million in liquidations, while Ethereum recorded over $202 million. Most of these liquidations, more than 85%, came from short positions. Following this, the Fear & Greed Index jumped to 18, showing that traders are regaining confidence.

Another key reason behind the rally is strong inflows into Spot Bitcoin ETFs. On February 25, ETFs saw $506.6 million in inflows, bringing total inflows to about $54.57 billion.

Altcoins and Crypto Stocks Also See Strong Recovery

The recovery has not been limited to Bitcoin. Major large cap crpytocurreny such as Ethereum, XRP, Solana, Dogecoin, and Cardano have also recorded a rise of 6 to 12% momentum.
Additionally, crypto-related stocks have also seen a sharp recovery. Coinbase shares rose 14%, Strategy, the largest corporate Bitcoin holder, gained 9%, and even the Metaplanet saw a jump of 10%, trading around $331.

Similarly, Stablecoin company Circle surged 34% following strong earnings.

Bitcoin Faces Key Major Resistance Ahead

As the crypto market started to recover, crypto analyst Joel Kruger advised traders to stay careful. He believes the market is still in a bearish phase. According to him, another drop is possible if Bitcoin fails to break key resistance levels.

The first major resistance zone is between $70,000 and $72,000. Bitcoin has been rejected in this area three times before, and each time the price fell back below $65,000.

Another important level is near $78,000. This level reflects Bitcoin’s estimated fair value based on on-chain capital flow data. If Bitcoin breaks above $78,000, it would show strong bullish momentum. 

Until that happens, the market may continue to move sideways in a consolidation range.