The bullish turnaround, after weeks of sustained downtrend, caught bears off guard, triggering $241 million in short liquidations over the past 24 hours, per Coinglass.
Bitcoin News
A surge in buying pressure pushed Bitcoin past $90,000 for the first time in nearly a week on Wednesday. The uptick was driven by improving risk sentiment rather than a crypto-specific catalyst, according to Singapore-based trading firm QCP Capital's Thursday report.
The move began after an intraday low of $86,400 and was sustained without major pullbacks. Bitcoin climbed 5.3% over the past 24 hours and is currently trading close to $91,500.
The bullish turnaround, after weeks of sustained downtrend, caught bears off guard, triggering $241 million in short liquidations over the past 24 hours, per Coinglass. This figure represents more than triple the amount of long liquidations recorded during the same period.
The S&P 500 index confirmed a fourth consecutive up-close candlestick on the daily timeframe on Wednesday, aligning with Bitcoin's bullish retest of $90,000. Markets have repriced the likelihood of a December rate cut by the Federal Reserve, with an 85% probability that the Fed will slash interest rates by a quarter point in December, according to the CME FedWatch tool.
The balance of Fed commentary has shifted slightly toward easing, with four officials signaling support for cuts, two remaining neutral, and six still opposed, according to QCP's report.
Bitcoin and the broader crypto market have become a reflection of the broader financial market's risk appetite, with macro catalysts playing a critical role in shaping sentiment. Other risks that could reintroduce a bearish outlook and trigger a sell-off include a potential delisting of Strategy from the S&P 500 index.
In options markets, institutional flows worth $2 billion were observed this week, with long call condor bets suggesting Bitcoin will likely remain range-bound. The long call condor is a defined-risk, limited-profit strategy constructed by buying four call options with the same expiry and different strike prices.
The investors' maximum profit is realized if the asset's price stays between the two middle strike prices at expiration, with maximum losses if it moves outside that range. QCP analysts noted that Bitcoin is likely to remain rangebound, with ETF-related distribution potentially hindering rallies beyond $95,000.
The $80,000 to $82,000 zone remains a key support area after the recent washout. Analysts remain cautiously optimistic as the leading cryptocurrency reclaims the $90,000 threshold amid shifting Federal Reserve expectations.
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