The world's biggest virtual currency climbed to $12,112 in trading moments after midnight New York time - its first entry past the $12,000 mark since August last year, according to pricing gathered by Bloomberg. But Bitcoin suddenly fell a half-hour after that high - losing 12 percent to $10,638.
Bitcoin's price has since recovered along with the broader digital currency market and was last changing hands at around $11,200 - but not before more than $1 billion in bitcoin and electronic currency positions were lost across several trading platforms.
The price fall saw $144 million in sell liquidations, commonly known as forced closures, of long positions on BitMEX - the highest since May 10, data source Skew said. The Seychelles-headquartered exchange posted forced closure of short positions of around $7.5 million.
Breaking past the $11,500-$11,800 range was the bulls' most notable feat in the past week and a host of market strategists said that above the $12,000 region a small amount of overhead resistance could be expected - which has led some traders to estimate a quick transition to the $14,000-$15,000 level.
Based on analysis by Rob Sluymer, technical strategist at Fundstrat Global Advisors LLC, clearing resistance at $10,000-$10,500, which was in consonance with the downtrend line from the late 2017 peaks and first quarter 2020 highs, put up a higher high for Bitcoin validating a new tactical uptrend.
The world's most popular cryptocurrency has advanced in the past days after rising past the $10,000 mark. It had dropped as low as $4,904 around the middle of March during the height of pandemic-fueled market volatility. But by mid-May it had rebounded.
According to cryptocurrency market data provider Bybt via Twitter, during the past 24 hours 72,422 people liquidated their positions. The biggest single liquidation order, to the tune of $10 million, was on Bitmex - known for its high leveraged trading volume.
Bitcoin's most recent foray into the $12,000 zone broke through this "ancient" range and once the price breaks through this point then there would be "a lot of open range above and a new bull market will be upon us," Ray Salmond quoted cryptocurrency analyst Michael van de Poppe as saying.
Meanwhile, Heisenberg Capital founder and Keiser Report host Max Keiser said the price of Bitcoin would soon rise to $28,000. He is certain that the all-time high of $20,000 likely will become a resistance, Joseph Young reported in his Cointelegraph report.
