With the award halving days away, it seems more likely that Bitcoin will increase its dominance in the market. Bitcoin dominance may test the 58% level in the coming days.
Bitcoin, which started the week at $ 67,000, is pricing above $ 70,000 again.
Will the rally continue?
According to analyst Pav Hundal, possible short position liquidation could accelerate the rally in Bitcoin. The analyst draws attention to the $ 80,000 level as the first strong resistance.
Hedge funds' short positions are 15 thousand units, while institutional long positions are 20 thousand units of Bitcoin volume.
In the current situation, a rise towards $ 80,000 may lead to the liquidation of short positions with a cumulative volume of 4 billion dollars. Conversely, a move towards $57,000 could lead to the liquidation of a cumulative $10 billion long position.
The situation is the same on the small investor side. We see that the appetite of the market has increased in the past two days.
Although the price of Bitcoin is only a thousand dollars away from the ATH level, reserves are down by 50,000 Bitcoin.
The picture for ETFs has remained negative since last week. Last week, Grayscale's sales were not matched by other institutions.
Grayscale had 342 thousand Bitcoins left in its portfolio.
Technical levels
In total market capitalization, the critical level of 2 trillion 470 billion dollars was exceeded.
We see that the uptrend is still strong. With the main resistance point of $2 trillion 730 billion, the cryptocurrency rally may gain momentum.
As long as we stay above $ 68,500, the image will continue to remain positive. If we do not close weekly below this level, downward wicks can quickly find buyers.
