Bitcoin tests $75,000 amid short positions liquidation
The cryptocurrency market is experiencing a massive short squeeze as Bitcoin price surges. According to CoinGlass data, $609 million in crypto positions were liquidated in the past 24 hours, with $485 million coming from short positions.
The sharp rise of Bitcoin above $70,000 caught many traders betting on a decline off guard. They were forced to close their short positions, which further fueled the upward movement of the first cryptocurrency. As a result, Bitcoin tested the $75,000 mark for the first time since November 2021.
This dynamics positively impacts the sentiment in the crypto market. The Fear and Greed Index, reflecting market moods, has risen to 65 points, corresponding to 'greed' among market participants. Recently, this indicator was in the 'fear' zone.
However, analysts warn that the sharp rise in Bitcoin may be temporary. They advise investors to exercise caution and not make impulsive purchases amid the hype. It is important to soberly assess the market situation and not succumb to emotional outbursts.