Bitcoin (BTC) returned to $28,000 on March 29 as a classic short squeeze took the market to five-day highs.

imageBTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC liquidations mount as Bitcoin reverses Binance dip

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $28,159 on Bitstamp.

The abrupt uptick came courtesy of exchanges, where a band of shorts was “blown out” to remove resistance and allow higher levels to return.

As noted by the analyst, Skew, these shorts were left over from Bitcoin’s prior moves and were worth around 1,500 BTC.

“Looks like the previous bounce was shorted heavily & those shorts just got blown out,” part of the accompanying commentary stated.

imageBitcoin exchange data summary chart. Source: Skew/ Twitter

According to analytics resource Coinglass, total BTC short liquidations for March 29 stood at nearly $20 million at the time of writing.

imageBitcoin liquidations chart. Source: Coinglass

Monitoring resource Material Indicators noted additional changes on the Binance spot order book.

Related: US enforcement agencies are turning up the heat on crypto-related crime

In anticipation of the March 31 macroeconomic data print from the United States, traders appeared to be preparing for potential buying opportunities should the downside enter again.

“Meanwhile price is pumping. If bulls run out of momentum before clearing $28k, things may get spicy,” comments acknowledged.

Bitcoin faces “serious ask liquidity” before $30,000

BTC price action thus effectively erased any trace of losses engendered by the news that the largest crypto exchange, Binance, was being targeted by U.S. regulators.

Related: Bitcoin is 1 week away from ‘confirming’ new bull market — analyst

Previously, consensus favored a return to test lower support levels for BTC/USD, this focusing principally on the 200-week moving average at around $25,500.

imageBTC/USD 1-week candle chart (Bitstamp) with 200MA. Source: TradingView

Skew meanwhile acknowledged that in order for short-term upside to continue, bulls would need to muster some serious buying power.

“Thick ask liquidity between $28K & $30K Would need some sizeable market buying to push through here,” a further tweet read.

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