Bitcoin’s 200-week moving average has passed $60,000, which means that the leading cryptocurrency might never trade below this level again.
Concurrently, a powerful breakout above $80,000 has triggered a massive wave of short liquidations.
Earlier today, BTC reached an intraday high of $80,631, reaching the highest level since Jan. 31.
The importance of the 200 WMA
The 200 WMA is widely regarded as Bitcoin’s ultimate macro support level.
Historically, Bitcoin rarely dips below its 200 WMA. This has happened several times only during extreme bear market capitulation events.
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The 200 WMA crossing the $60,000 threshold fundamentally shifts the baseline of the asset.
The metric is a lagging indicator that smooths out short-term volatility.
The $80,000 breakout
Bitcoin experienced a sudden breakout earlier today, with bears pushing the price of the leading cryptocurrency past the $80,000 psychological barrier.
The sudden surge to a 94-day high caught the derivatives market completely off guard.
According to recent data from CoinGlass, the sudden upside volatility resulted in massive wipeouts for over-leveraged traders. Total liquidations have reached $357.34 million over the past 24 hours. Notably, a whopping 100,741 individual traders were liquidated.
Of the $357.34 million in total liquidations, a staggering $305.04 million were short positions, compared to just $52.30 million in longs.
The largest single liquidation order occurred on Binance for an ETH-USDT swap, valued at an incredible $11.77 million.
According to DonAlt, a popular pseudonymous cryptocurrency trader, market participants will turn full-blown bullish once the price of the leading cryptocurrency surges above the key $87,000 level.
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