Another Bitcoin rally broke out, briefly sending the cryptocurrency to the mid-$27,000s as short positions worth around $32 million were wiped out in a matter of minutes.
This comes shortly after the market started to turn bullish after the news that Tesla had invested $1.5 billion in Bitcoin.
While the shorts were liquidated, there is still a large number of open positions in the market, which suggests that the bullish reversal might not be over yet. The next major levels to watch are $30,000 and then $35,000, which could potentially come into play if we continue to see buying pressure in the coming days.
For now, it is likely the market will take a breather while the bulls and bears look for their next respective targets. If the bulls can successfully defend the $27,000 level in the coming hours, it is possible that we will see a strong return to the $30,000 handle. On the other hand, if the bears can break the $27,000 level and hold it, we could potentially start to see a deeper correction over the coming days.