#What is driving Bitcoin's recent price increase?
Bitcoin has experienced a notable rally, resulting in over $209 million in liquidations within the past 24 hours. This figure is significant, as short positions accounted for more than $170 million, representing approximately 82% of the total liquidations recorded by CoinGlass.
As of this morning, Bitcoin's price increased by 2%, reaching $89,700 according to CoinGecko. It was trading near $89,400 during the report. This surge has resulted in a wave of short liquidations, reflecting ongoing activity from spot investors who are accumulating Bitcoin. However, market conditions warrant caution despite the improving liquidity.
#Will Bitcoin maintain its momentum above critical resistance levels?
Whether Bitcoin can sustain its upward trajectory largely depends on breaking through key resistance levels. Analysts highlight that without a definitive breakout above the resistance zone between $90,000 and $92,000, supported by an increase in spot demand, price rallies may face significant retracements. Investors should monitor these resistance levels closely to gauge potential price movements.