The bitcoin price exceeds 96,000 dollars marking a two-month high during the course of Tuesday. According to data reported by Oliver Knight, the leading asset broke key resistances after several failed attempts. This breakout generated significant buying pressure in the spot markets during the last few hours of global operations.
The upward movement caused the liquidation of 500 million dollars in short positions quite suddenly. This phenomenon occurred immediately after forcefully breaking the technical barrier located at 94,500 dollars. Likewise, the open interest in the futures of the main cryptocurrency dropped slightly after this massive closure. It is observed that traders are covering their bearish bets given the current momentum. Many derivatives traders were forced to repurchase their positions to avoid further losses.
On the other hand, altcoins showed a superior performance to the king asset with registered double-digit gains. Projects like DASH reached their highest levels since the year 2021 with considerable trading volume. In this way, the market seems to be recovering from a prolonged corrective phase that affected prices. The sentiment of optimism returns strongly to the ecosystem after months of constant uncertainty. Currencies such as OP and TIA also stood out for their positive performance today.
Digital financial market resilience boosted the massive return of global investors
Bitcoin dominance fell to 58.6% due to the strong rebound recorded by alternative currencies. The CD80 index, which tracks eighty diverse assets, rose an impressive eight percent daily recently. Therefore, investors are rotating capital towards projects with lower capitalization seeking higher profits. This capital rotation suggests greater confidence in the general stability of the crypto sector. This trend benefits assets that were stagnant during the last weeks of trading.
Analysts suggest that the market was in extreme oversold conditions after the October crashes. Many traders had previously migrated to precious metals or artificial intelligence technology stocks temporarily. However, the recent change in trend has severely punished those who were betting on a persistent decline. The market has punished the bearish traders who did not foresee this sudden price rally. This situation forced many to rethink their investment strategies quite immediately.
Will the price be able to maintain the support needed to reach new highs?
In the short term, traders expect 94,500 dollars to act as a new technical floor. If this support holds firm, the next relevant target for the price is located at 99,000 dollars. It is also vital to consider that this zone acted as important historical support last year. Consolidation above this level is crucial to maintain the current bullish trend. Experts are closely monitoring any signs of exhaustion in the current buying volume.
Nevertheless, a failure to maintain this support could lead the price to lower ranges very soon. Investors should closely monitor market volatility in the coming active trading sessions. The current outlook suggests a renewed optimism that could define the trajectory of the financial sector this quarter. All eyes are on institutional behavior in the face of these new price levels. This scenario poses an exciting challenge for those seeking returns in risk assets.
