In a notable turn of events, the cryptocurrency market is experiencing a robust bullish momentum, with Bitcoin and Ethereum bulls asserting control and triggering the liquidation of shorts valued at approximately $60 million. This development hints at a potential shift in market sentiment as the weekend approaches.
Bitcoin, in particular, has displayed remarkable resilience, maintaining its position above the critical support level of $40,000. The coin has recently bounced back from this level, historically recognized as a formidable psychological barrier for both bullish and bearish forces.
According to the charts, if Bitcoin sustains its stance above the $40,000 support, the next significant resistance to monitor is around $42,000. This level might witness some consolidation before a potential upward surge. Conversely, a breach of the $40,000 support could prompt traders to seek support near the $38,500 region.
Meanwhile, Ethereum is also signaling a recovery following a recent sell-off. Finding support near the $2,100 mark, just above the 200-day exponential moving average, Ethereum reflects a positive indicator for long-term trends.
Should Ethereum maintain its rebound, the immediate resistance lies at $2,400. A breakthrough above this level could pave the way for further gains towards $2,500, a level that has historically served as both support and resistance. Conversely, a dip below the current support may lead to a test of the next support zone around $2,000.
Adding context to these developments, the liquidation heatmap highlights the pressure on short sellers as the market moves against their positions. This trend is particularly pronounced in Bitcoin and Ethereum, where a substantial number of short positions have been closed rapidly. Overall, the current market conditions exhibit bullish signals, with robust support levels holding firm.
