Bitcoin is up ~5% today with the July 4th daily candle about to close. Market optimism increased over the holiday, and Celsius FUD passed.
Crypto lending platform Celsius lending which froze customers funds around the time of the June Bitcoin crash to $17,600 and Ethereum crash to $880, has lowered the price at which their BTC assets will be liquidated.
Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.
Why is BTC Going Up
The latest Celsius liquidation price now being $4,967 – a significant reduction from previously being around $14k, then $12k – drastically reduces the chances of a flash crash in the crypto markets.
Were Celsius to be liquidated, their position is so large – 23,962 BTC – there may not be enough willing buyers with bids to fill below that point. Liquidation results in forced market selling of a position.
Source – Oasis.app WBTC-A Vault 25977
Traders reacted well to the lower probability of a larger Bitcoin crash, which could take months to recover from, and a higher probability of the Bitcoin bottom already being in for 2022 at $17,600 – or close to it (lows tend to get run again).
Some crypto traders that were previously bearish have flipped bullish now at least in the short term for a relief rally, for example TraderSZ is long with a price target of $22k.
Another reason why Bitcoin is going up could be CZ Binance – CEO of Binance exchange tweeting about the bullish news that banks can now hold Bitcoin for their reserves. If 1% of bank holdings were BTC that would amount to trillions of dollars – and raise the Bitcoin price, which currently has a market cap of only $386 billion.
Source – @cz_binance
The total crypto market cap fell below $1 trillion to $762 billion during the recent ‘crypto winter’ and wider correction in the financial markets in 2022. Although it is also bouncing back and going up – today at around $900 billion. Its all time high hit in November 2021 was just over $3 trillion.
Will Bitcoin Go Up in 2022?
One issue however is that a high volume of Bitcoin long have been opened on crypto exchanges on July 4th – trader optimism tends to improve on holiday periods, according to Santiment data. US traders, one the largest markets, are betting big on Bitcoin going up more.
If price corrects to around $19,400 and some of those are liquidated, it could fuel continuation to the downside and lead to the June 18th lows of $17,600 being swept. Some respected analysts such as @jimtalbot have predicted on streams that the June bottom will be tested again based on the low order flow that day, a Saturday.
Some investors that are still long term Bitcoin bulls predict that it will require an accumulation cycle of around one or two years up to the next Bitcoin halving – in mid 2024 – before Bitcoin can really recover and go up to set new highs.
Related
Next 10x Crypto – Lucky Block (LBLOCK)
- Listed on LBank, Pancakeswap – Trending in 2022
- Crypto Games Platform – luckyblock.com
- Donations to Charity
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- Passive Income Rewards
- Worldwide Competitions
- 10,000 NFTs Minted – nftlaunchpad.com
Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.
Read More:Why is Bitcoin Going Up – Celsius BTC Liquidation Price Now $5k
