Bitcoin Price Tops $80K, Sparks $200M in Short Liquidations

Key Insights:

• Bitcoin price crosses $80,000 for the first time in 3 months.
• The ratio of Bitcoin longs to shorts widens as the latter face heavy liquidations.
• MicroStrategy has reportedly skipped its Monday Bitcoin purchase this week but will reportedly resume next week.

Bitcoin price has finally crossed the $80,000 mark after days of anticipation and failed attempts. The cryptocurrency struggled to reclaim this critical level over the last 3 months, but it has finally done so.

The last time Bitcoin price traded above $80,000 was in late January. The same price level had previously served as a key support level, with multiple bounce-backs occurring near it.

Bitcoin price action | Source: TradingView

The big question now is whether the BTC price will hold above $80,000. It is worth noting that the cryptocurrency was not yet overbought at the time of observation. This may indicate more upside potential.

On the other hand, historic support zones may also flip into resistance zones. The $80,000 price level may also prompt short-term profit-taking.

Short Sellers Get Rekt as Bitcoin Price Defies Bearish Expectations

Bearish expectations near the same $80,000 price level were quite pronounced. This was evident by the level of liquidations and the ratio of longs versus short liquidations.

According to CoinGlass, the Bitcoin price push above $80,000 has triggered liquidations tilt against the shorts. Roughly $201 million in shorts were liquidated in the last 24 hours. For reference, only $57 million in Bitcoin long liquidations were observed during the same period.

This imbalance suggests that there were heavy expectations of a retracement. However, this rally occurred within the first 5 days of the month. This is important because price may achieve a bias within this level. This may also work against the longs if an unexpected reversal happens.

On the other hand, BTC price may extend its bullish push above $80,000. If this happens, the next resistance level will be near $90,0000. This warrants a look at the factors that could support another directional move.

Whale activity may offer insights into the market’s next major move. The CoinGlass large order book data signaled a bearish bias among investors. For example, whales sold off about $51 million worth of spot Bitcoin (across Binance, Coinbase, and OKX) in the last 24 hours at press time.

Whales also executed over $4 billion in short positions on OKX and Binance futures. This signaled bearish expectations and positioning that could benefit them if Bitcoin price faces yet another retracement.

Did MicroStrategy Just Make a Bearish Case for Bitcoin Price?

While the market has been pondering whether BTC price will continue rallying or pull back, MicroStrategy sent a strong message.

The Bitcoin treasury company has reportedly raised $82 million. This amount will reportedly be used to buy more Bitcoin. However, recent reports also revealed that the company purchased BTC on 4 May.

This was noteworthy because the market has reportedly been buying BTC on Mondays. Some analysts believe that the decision to skip to next week may be due to expectations of another discount.

Bitcoin reportedly skips buying Bitcoin this Monday | Source: Coingecko

This aligns with the aforementioned whale’s positioning. But that’s not all. Macro factors had a major impact on Bitcoin price action and may continue to do so. Over the last 4 weeks, Bitcoin has enjoyed relative calm as U.S.-Iran tensions cooled.

The conflict between the two countries is reportedly threatening to reignite. If this happens, investors will likely take a step back and adopt a cautious outlook. If this happens, the BTC price may be suppressed once again.

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