The levels of liquidation that have accumulated suggest a significant imbalance, with short liquidations dominating in the days leading up to January 17.
These liquidations have led to a substantial increase in buying pressure within the market, prompting short sellers to close their positions and consequently pushing prices up.
Moreover, the increased volume of liquidations occurring around key resistance levels has highlighted a underestimation of Bitcoin’s bullish momentum by market participants, inadvertently fueling an upward surge in prices. This sudden rise has further strengthened the overall bullish sentiment surrounding Bitcoin, albeit with some caution.