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▲ Bitcoin (BTC)/ChatGPT generated image
Bitcoin (BTC) surged to $78,000 before falling back, liquidating both long and short positions simultaneously, while uncertainty surrounding an Iran peace agreement and low market confidence are hindering a short-term rebound.
According to Cointelegraph, a cryptocurrency specialized media outlet, on May 26 (local time), Bitcoin showed sharp volatility before and after the opening of Wall Street on Tuesday, hitting $78,000 and then quickly falling. Cointelegraph reported that although Bitcoin reached its highest level since last Thursday, this movement did not lead to a sustained rise but merely absorbed liquidity.
According to CoinGlass data, both long and short positions were liquidated during this process, with 24-hour Bitcoin liquidations totaling $66 million. Market volatility was triggered by US airstrikes on Iran, which raised doubts about the latest peace agreement attempts. West Texas Intermediate (WTI) crude oil rose towards $95 per barrel, but the US stock market shook off concerns and again recorded an all-time high.
Trading resource Material Indicators analyzed that Bitcoin's price movements are still "dominated by liquidation hunting." The firm explained that "Purple Whales are not suddenly turning bullish on a macro scale for fundamental reasons, but are engaging in range-bound swing trading in lower timeframes." It also stated that approximately $75,500 in buy-side liquidity is attempting to defend the key support level of the 21-week moving average.
Material Indicators presented Bitcoin's 21-week simple moving average at $75,800. Trader Daan Crypto Trades pointed out that the largest liquidity zone below the current price is at $74,000. Cointelegraph reported that Bitcoin failed to follow the US stock market's all-time high trend, showing relatively sluggish performance even within risk assets.
On-chain analytics platform Glassnode stated that funding rates have clearly turned positive from their previous negative territory. Glassnode explained that "this movement is a sharp reversal from the strong short-biased positioning in April." However, Vetle Lunde, Head of Research at K33 Research, assessed that Bitcoin largely traded sideways last week, spot trading volume was near yearly lows, and derivatives activity and open interest also slowed down.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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