Bitcoin’s price growth is astonishng to at least one group: those who place highly leveraged futures bets in order to profit from a possible price reversal.

BTC Price Index and Live Chart – CoinDesk”>(BTC) prices lost some $90 million on Tuesday alone, adding to the $70 million in short liquidations on Monday, according to data source CoinGlass. They may have helped to boost the value of the asset since the beginning of the week, which has seen it rise to $44,000.

When an exchange closes a trader’s leveraged position because the trader has lost a portion or all of their initial margin, it is called liquidation. When a trader fails to meet margin requirements (fails have enough funds to keep the position open), it is called liquidation.

The local top or bottom can be indicated by large liquidations, allowing traders to adjust their positions accordingly.

CoinGlass data shows that the majority of these liquidations took place on Binance, OKX, and Huobi. Trading volumes are up 25% over the last week and open interest is now $20.2 billion, up from $17.2 billion when December began.

Bitcoin open interest has risen in the last week. (Coinglass)

Bitcoin growth is being aided by several factors. The growth of bitcoin is being aided by several factors. These include traders pricing in anticipated rate cuts in the U.S. which boosts risky bets like technology stocks and Bitcoin.

As reported, at least one group of traders placed a $200,000,000 BTC futures position over the weekend. This is indicative of the demand for exposure to bitcoin. These moves coincide with the constant updates and changes to spot ETF applications.

Several observers predict that bitcoin will reach $48,000 in the next few weeks.

In a note sent to CoinDesk, Julius de Kempenaer shared that the staging of this rally began in the week starting 10/23, when BTC was able to break through the iron beam resistance at $30k. On the weekly chart the next level of resistance will be around $48k. This is the peak reached at the end March 2022.

He added, “All in, the BTC trend is clearly upward, with an initial target of around $48,000, and support at or near $38,000.”

Omkar Godbole is the editor.