Bitcoin Tests New Heights: Is a Major Move Imminent?

Bitcoin (BTC) experienced a significant surge, breaking above $110,000 on Monday and recovering from last week's dip. This puts it within striking distance of its all-time high reached in May.

• BTC climbed by 3.7% in the last 24 hours.
• Ether (ETH) mirrored Bitcoin's gains, rising 3.8% to surpass $2,620.
• Hyperliquid and SUI also saw notable gains, outperforming many other large-cap cryptocurrencies.

Leverage Flush and Market Sentiment

The rally caught many short traders off guard, resulting in over $110 million in Bitcoin short liquidations within a single hour, according to CoinGlass data. Across the entire crypto market, short liquidations amounted to $330 million, the highest in a month. This leverage flush could provide a more solid foundation for further price increases.

Analyst Caleb Franzen of Cubic Analytics described the price action as a "peaceful rally," characterized by consistent higher highs and higher lows. Any signs of weakness have been met with strong buying support, suggesting sustained bullish momentum.

Crossroads Ahead

Despite the recent rally, Bitfinex analysts caution that Bitcoin is at a "crossroads." On-chain data reveals increased sell pressure from long-term holders, which could potentially offset demand. This creates a balanced scenario between structural support and fading bullish momentum.

Macro Catalysts on the Horizon

OTC trader Jake O from Wintermute suggests that upcoming macro events could act as catalysts for the next price movement. The meeting between U.S. and Chinese trade representatives, along with Wednesday's Consumer Price Index (CPI) release, are key events to watch, which could heavily influence market sentiment. The CPI will provide updated insights into the U.S. inflation rate.

Key Takeaways:

• Bitcoin's recent surge places it near all-time high levels.
• Short liquidations suggest improved market stability.
• On-chain data indicates potential selling pressure from long-term holders.
• Upcoming macro events could be critical in determining Bitcoin's next major move.