Altcoins are notching double-digit gains as bulls push Bitcoin price back toward the $55,000 level.
Bitcoin price started the week off with a strong move that propelled the price above $50,000 and at the time of writing, bulls are in pursuit of the $55,000 level.
On April 21, JPMorgan analysts wrote that the liquidity in the cryptocurrency markets is likely to recover sharply after the recent sell-off in Bitcoin (BTC). According to the analysts, “the worst of the liquidations” could be over “suggesting little overhang to work through.”
Another bullish sign was shown by the Crypto Fear and Greed Index, which quickly dipped from greed in the last week to fear on April 25, indicating that exuberant high leverage traders had likely been washed out. This reset also gave an opportunity for larger-size investors to buy at lower levels.
Today’s breakout seems to have caught the aggressive bears napping, which resulted in the liquidation of $150 million in shorts, according to Moskovski Capital chief investment officer Lex Moskovski.
Data from Bybt shows that the funding rate for Bitcoin is less than 0.01%, which is below the neutral rate. This suggests that there are still shorts in the system which may be squeezed out if the uptrend resumes.
Let’s analyze the charts of the top-10 cryptocurrencies to identify the critical resistance and support levels that will determine the next trend.