5 BTC Hike in 24 hours What was the cause

5% jump of Bitcoin in 24 hours; What was the cause? 2023


While some investors expected the value of Bitcoin to fall after a US regulatory body sued Binance, a classic market event caused the price of the digital currency to once again rise above the $28,000 level.

Hourly chart of Bitcoin/USD price.

Liquidation of Bitcoin short trades and price increase

According to Cointelegraph, market data shows that the price of Bitcoin rose to $28,650 on March 29 (Frudin 9).

The sudden jump in the price of Bitcoin was caused by exchanges; Where the short selling pressure caused Bitcoin to break through its resistance and once again reach the $28,300 range. Short selling pressure occurs when short (bearish) traders are forced to exit their trading positions due to a sudden rise in market prices.

The Skew account also noted on Twitter that these short positions were related to previous market moves and were worth around 1,500 bitcoins.

Askew said:

It seems that after the previous price jump, many short positions were opened, which are now all liquidated.

According to data from the CoinGlass website, the total value of Bitcoin short trades liquidated in the last 24 hours is more than $38 million.

5% jump of Bitcoin in 24 hours;  What was the cause?
Bitcoin liquidated trading positions chart.

A review of data from the Material Indicators website also shows more changes in the order book of the Binance spot market.

With inflation expected to decline ahead of the release of US economic data on March 31, traders seem to be preparing for potential buying opportunities if prices fall.

The Material Indicators page wrote on Twitter:

In a situation where the price is rising, the situation could change if the buyers’ capital is exhausted before the price reaches the $28,000 level.

Bitcoin needs liquidity to reach $30,000

Bitcoin’s price performance after the release of the news of the US Commodity Futures Trading Commission’s complaint against the Binance exchange effectively wiped out all its negative effects.

Earlier, analysts agreed on Bitcoin price falling to the support of the 200-week moving average, i.e. the $25,000 range.

5% jump of Bitcoin in 24 hours;  What was the cause?
200-week moving average on the Bitcoin chart.

However, Askew noted that buyers will need more buying power to sustain Bitcoin’s near-term uptrend.

Due to the large volume of sell orders between $28,000 and $30,000, Bitcoin needs significant buying volume to cross this range.


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