"Short-selling forces annihilated"...Bitcoin eventually breaks $80,000 barrier

▲ Bitcoin (BTC)

Bitcoin (BTC) is leading a strong upward rally, bolstered by Morgan Stanley's record-breaking spot ETF debut and expectations of regulatory easing. The overall virtual asset market is attempting to stabilize, maintaining a market capitalization of $2.41 trillion, fueled by a short squeeze.

Crypto media outlet BeInCrypto reported on April 10 (local time) that the total virtual asset market cap rose by 0.63% from the previous day. This increase was driven by a massive short squeeze. Over the past 24 hours, short positions worth $247.89 million were forcibly liquidated. This accounts for 73% of the total liquidation amount of $340.10 million. A total of 123,299 traders suffered massive losses due to forced position closures.

Bitcoin showed strength, outperforming the overall market's returns. The success of MSBT, a Bitcoin spot ETF launched by Morgan Stanley, served as a catalyst. Amy Oldenburg, Strategy, evaluated this achievement as the best in the company's history. Additionally, news about the CLARITY Act, a U.S. cryptocurrency market structure bill promoted by the U.S. administration, is acting as a major regulatory boon.

From a technical analysis perspective, Bitcoin is attempting to break above the 61.8% Fibonacci retracement level of $73,249. If it successfully closes above this point on the daily chart, an upward trajectory opens up to $78,392. On the downside, the 50% Fibonacci level of $71,660 is acting as a key support. The overall market cap is aiming to reclaim the $2.44 trillion resistance level, currently above the $2.39 trillion support level.

Zcash (ZEC) attracted market attention by surging 17% in 24 hours. It finally broke above its 73-day downtrend channel, shifting its technical structure to bullish. If it maintains the $341 support, it could extend its rally to $583, passing through the 161.8% Fibonacci extension level of $433. Conversely, if it falls below $341, this breakout will fail, and it risks being trapped in a downtrend again.

The virtual asset market is currently going through a volatile period where buying and selling forces are clashing intensely after the short squeeze. Morgan Stanley's large capital inflow and the promotion of the bill are strong pillars firmly supporting the market's downside. Investors are agilely responding to the high price volatility, monitoring for any breaches of key technical indicators. The institution-led market, spearheaded by Bitcoin, is expected to gain strength for the foreseeable future.

*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.*