Bitcoin Climbs Above $110K, 'At Crossroads' for Next Major Move

Bitcoin Climbs Above $110K, 'At Crossroads' for Next Major Move
CoinDesk
CoinDesk
BTC-1.95%
SUI-5.90%
ETH-3.96%

Bitcoin's BTC quiet climb on Monday accelerated to its strongest price in June, rebounding from last week's decline to near all-time high levels.

The largest crypto advanced by 3.7% over the past 24 hours, topping $110,000, and it's changing hands by only 2% from its record prices observed in May. Ethereum's ether ETH kept pace with a 3.8% gain during the same period, bouncing above $2,620. Native tokens of Hyperliquid HYPE and SUI SUI outperformed most large-cap cryptocurrencies, rising 7% and 4.5%, respectively.

Bitcoin's move higher caught leveraged traders off-guard, liquidating over $110 million worth of short positions within an hour, CoinGlass data shows. Across all crypto assets, some $330 million of shorts were liquidated during the day, the most in a month. Shorts are seeking to profit from declining asset prices.

The move happened while traditional markets showed muted action, with the S&P 500 and Nasdaq indexes flat on the day. Crypto-related stocks bounced during the session to catch up with BTC's recovery over the weekend.

"A 'peaceful rally' is a perfect way to describe this price action," said well-followed analyst Caleb Franzen, founder of Cubic Analytics. "Just a consistent development of higher highs and higher lows. Any signs of weakness? Buyers step in and defend the trend."

The crypto market is now on steadier footing for a potential next leg higher after bitcoin's 10% decline to near $100,000 and with more than $1.9 billion in liquidations across crypto derivatives over the past week, having flushed excessive leverage, Bitfinex analysts noted in a Monday report.

However, on-chain data indicates rising sell pressure from long-term holders that could overwhelm demand, the analysts added.

“Bitcoin is now at a crossroads—balanced between structural support and waning bullish momentum, waiting for its next macro cue,” the Bitfinex note added.

Those macro catalysts may come later this week, noted Jake O, OTC trader at crypto trading firm Wintermute.

"U.S. and Chinese trade representatives are scheduled to meet today, with markets likely sensitive to any headlines following last week's positive momentum, and the data calendar remains light until Wednesday, when CPI will offer fresh insight into U.S. inflation," he said.

UPDATE (June 9, 21:51 UTC): Adds short liquidation data from CoinGlass.

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