Bitcoin Breaks Above $25K

• Bitcoin price broke above $22,500 to new highs above $25,000 amid the hunt for short stops and liquidations.
• The move to $25k resulted from short liquidations of over $155 million.
• Analysts at crypto exchange Bitfinex suggest that recent price movements could be indicative of a bottom.

Liquidations Fueled Breakout

Bitfinex analysts suggest that Bitcoin’s breakout from the $22,500 price level to highs above $25,000 was fueled by the massive liquidations recorded over the past few days. Commenting on BTC price outlook and what could lie awake in coming weeks they said: „Over the past two weeks, the BTC price has been hunting both over-leveraged long positions, as well as liquidating over-eager shorts of over $155 million. It reached an eight-month high of $25,000 in the process.“

Pullback Caught Out Bullish Speculators

A sharp but short-lived pullback caught out some short-term bullish speculators off-guard who were betting on a push to the upper $25,000-$26,000s on Thursday, February 16th according to Bitfinex analysts. Profit-taking in the wake of the recent rally and a stop-run on those who had gotten overly aggressive chasing the upside might well send Bitcoin back below $24,000 in the week ahead.“

Price Action Could Result In Ranged Movement

The action that has seen both longs and shorts have been simultaneously wiped off could result in ranged price movement according to Bitfinex analysts. This is due to traders taking profits following a rally or getting stopped out when prices reach key levels after an explosive move higher.

Short Term Outlook

Going forward it is likely that Bitcoin will continue its volatile swings with possible retracements followed by more bullish moves according to analysts at crypto exchange Bitfinex.