Key Points
Bitcoin [BTC](https://coineagle.com/price/bitcoin/) has experienced a significant surge, breaking its twelve-day range. This bullish trend is fueled by the news that MicroStrategy has acquired another 3000 BTC.
This, along with substantial capital inflows into Bitcoin ETFs, has given the recent breakout considerable momentum. Crypto analyst, Ali Martinez, stated that the $57.1k is a significant pocket of resistance. This level has been reached recently, with the strength of the move surprising many.
Bitcoin’s Trading Range and Indicators
Bitcoin has been trading within a range highlighted in purple since February 17th. This range stretched from $50.6k to $52.5k. The recent surge saw a H4 candle close above the range highs, continuing to the $57.1k level.
The RSI and the OBV showed a significant upward movement. The RSI indicated overbought conditions and the OBV reflected heavy buying volume. The higher timeframe chart showed that the next significant resistance level is at the $59k level.
The Open Interest and the spot CVD soared during the rally. The Open Interest had been muted from February 23rd to the 26th, but speculators showed frenzied activity as BTC raced above the $51.8k mark. The spot CVD has been trending higher in the past five days, accelerating during the breakout and not stopping, indicating more room for gains.
However, there are concerns that the market might be overheating on the lower timeframes. Analysis of the Liquidation Levels showed that the Cumulative Liq Levels Delta was massively green. It showed a reading of +22.45 billion at press time, which meant the long liquidations far outweighed the short ones. This could lead Bitcoin to retrace southward over the next couple of days to force these positions to close.
The $55.5k, $53.5k, and $52.4k levels were estimated to have around $300 million in long liquidations. A revisit of the $53.5k level shortly appeared very likely. A drop to the $52.4k level would be a retest of the former range highs and could offer a buying opportunity.
