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The recent spike in the price of Bitcoin beyond $30 resulted in short traders’ greatest loss within the last 2 months.

Short traders should use risk management strategies like stop losses to minimize their losses.

Crypto friendly regulatory environment and the next halving event may create BTC bullish momentum. 

**Keywords**: BTC price, <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> investments, price for BTC, Bitcoin hits, <a href="/how-to-buy/bitcoin-btc" target="_blank" class="blog_inner_link">buy Bitcoin</a>, bitcoin holders
## Introduction
Most cryptocurrencies have so far performed well in 2023. Although some of them have not gained much they have maintained price stability which has created confidence in the market. Bitcoin, which has gained over 70% since the start of the year, [is still bullish](https://www.gate.io/es/blog_detail/26/bitcoin-price-predictions-2025.-will-the-bullish-trend-continue "is still bullish"). Recently, it [surpassed $30K](https://www.gate.io/blog_detail/2800/daily-news-bitcoin-breaks-30k-as-crypto-initiatives-step-up-crypto-stocks-rise-as-wall-street-competition-sets-in "surpassed $30K") something it last did in June 2022.

In this piece we look at the price performance of Bitcoin (BTC) in the second quarter of 2023. We will also discuss the factors that can push BTC past $40K this year. 
## Bitcoin Breaks the 30K Barrier
Although Bitcoin has picked much momentum since the beginning of the year it has been trading sideways from April till now. Nevertheless, the crypto market wonders if it will break above $30K again this year or move even higher than that. 

Specifically, the price for Bitcoin was fluctuating between $27,000 and $30,000 for most of the time since April. However, it broke above the $30,000 price level on 21 June but lost the momentum for a few days. Since 23 June the [BTC price](https://www.gate.io/price/bitcoin-btc "BTC price") is mostly above $30K. 

On the contrary, it also broke below $27,000 once but managed to return to its price channel. As of 1 July BTC is trading at $30,577 after gaining 1.8% within the last 24 hours. 
![](https://gimg2.gateimg.com/image/article/16885373041.png)
The Price of Bitcoin- CoinGecko

The sideways pattern, which Bitcoin has been experiencing for over two months, is not a good sign. Usually, when a cryptocurrency stays in a horizontal channel for a long time the greatest possibility is that its price would fall below the support level. In this case, the BTC price is likely to fall below $27,000. 

From there, it can get into a free fall heading towards the next critical support level which is $20,000. Some analysts like QCP Capital have predicted that the price of BTC may even drop to $16,000. 

Looking at the current state of things there seems to be no catalysts for the price of Bitcoin to rise again in the near future. First, inflation in the United States and other countries is still high which can slow down Bitcoin investment. Even though the United States Federal Reserve has indicated that it may slow down interest rate hikes that is unlikely to lead to a significant rise in crypto investments soon.

Read also: [Bitcoin Halving: Countdown to Crypto Bull Market](https://www.gate.io/explore/bitcoin-halving-countdown "Bitcoin Halving: Countdown to Crypto Bull Market")
## Short Traders’ Plight: Biggest Loss in 2 Months
Short bitcoin traders incurred high losses when the price of Bitcoin rose over $30k within a single day on 21 June. According to CoinGlass data, cryptocurrencies worth more than $178 million were liquidated as a result of the sudden spike in the price of Bitcoin. 

There was much liquidation of both shorts and longs within that period. For example, Bitcoin futures generated up to $75 million in losses while ether (ETH) futures racked $51 million in losses. Also, PEPE coin futures had losses that amounted to around $10 million. Binance and OKX were two crypto exchanges that generated the greatest losses amounting to $65 million and $58 million respectively. 
## Faced with Large Losses Traders Adjust their Strategies 
Basically, the short traders made losses when the prices of the cryptocurrencies like Bitcoin and ETH increased. The best thing for the traders to do would be to change their strategies. 

When the prices of cryptocurrencies start rising it is best for smart traders to place buy orders up to a certain level of choice. This means that short trades would automatically close when the price of the cryptocurrency rises beyond the established level. This can minimize the losses incurred.  

The [short traders](https://www.gate.io/learn/articles/what-is-short-selling-in-financial-markets/325 "short traders") can also manually close their trades when the prices of the cryptocurrencies start rising. As noted, implementing appropriate risk management strategies help to minimize losses. 
## Assessing Market Dynamics
Another way to minimize losses when shorting is to constantly watch market dynamics. Traders should weigh market sentiments at all times whether they have gone short or long. 

They can use market indicators like the relative strength index (RSI) to predict the direction the market is taking. This helps traders to close their positions early before incurring heavy losses. 

The traders can best forecast the market direction by following breaking news that can affect the performance of investment assets. For example, if the government pauses interest rate hikes that can indicate possible price rises for certain cryptocurrencies. 

Changes in certain metrics can signal possible price movements, either upwards or downwards. For instance, an increase in trading volume or new wallet addresses may indicate a possible change in the value of a cryptocurrency.
## Five Things for Bitcoin to Reach $40K
The ChatGPT AI-based model predicts seven things that can push the price of BTC towards $40K. Let’s briefly discuss five most important factors that can influence the price of BTC to rise above $30K or move towards $40K or beyond. 

The market sentiment, the level of demand for BTC, the regulatory environment, the halving event, technological improvements and the performance of the global economy are some of the key factors that can drive the price of BTC towards $40K.

Market sentiment: According to ChatGPT an increase in institutional interest and a greater adoption of bitcoin and other cryptocurrencies will drive the BTC price up. The endorsement of bitcoin by influential people and news media will also help in pushing the value of Bitcoin up.This is because a positive market sentiment can enable bitcoin holders to buy more BTC. 

Regulatory developments: Favorable regulations and the acceptance of Bitcoin by various governments including the United States can determine the future price of Bitcoin. If national governments accept cryptocurrencies and allow free trading of digital assets their prices are likely to rise. For instance, this may influence new investors to buy bitcoin in large amounts. 

Technological developments: If developers and engineers find more ways of incorporating other developments in the bitcoin codebase its price may rise with time. The recent introduction of the Ordinals protocol on the bitcoin blockchain and the development of BRC-20 tokens have created hope that more improvements are possible in the future. 

Bitcoin halving: The bitcoin halving event expected to take place in 2024 is likely to push the price of Bitcoin towards $40K. Primarily, halving decreases the quantity of BTC that enters the market and reduces its programmed inflation by half. 

Global economy: A more stable global economy, with low inflation rate, fewer negative geopolitical events and economic certainty will likely push the price of bitcoin up. Once bitcoin hits $40K there will be confidence in the market. 
## Conclusion
During the greater part of the previous two weeks, the price of Bitcoin was fluctuating between $27,000 and $28,000. A break above $28,000 has pushed its value beyond $30K. If the price had dropped below  $27,000 that might have driven it towards the $20,000 resistance level. A positive market sentiment, crypto friendly regulatory environment, the next halving event and technological improvements on the bitcoin blockchain are likely to influence the value of bitcoin. 
## FAQs About Bitcoin
### Why is Bitcoin rising?
The recent surge in the price of Bitcoin was caused by the news that several asset management firms are interested in introducing Bitcoin Exchange Traded Funds (ETFs). Some firms like BlackRock have applied for licenses to launch Bitcoin ETFs. Read also [Price Prediction: Where will the Crypto Market be in the Future?](https://www.gate.io/price-prediction "Price Prediction: Where will the Crypto Market be in the Future?")
### Will Bitcoin go up in 2023?
The price of Bitcoin is likely to rise in 2023 due to several factors such as increasing demand, greater institutional adoption and the next halving event. Bitcoin halving is likely to take place in 2024. Read also about [BTC Price Prediction & Forecast for 2023, 2025, 2030](https://www.gate.io/price-prediction/bitcoin-btc "BTC Price Prediction & Forecast for 2023, 2025, 2030")
### Will Bitcoin skyrocket in 2024? 
The value of Bitcoin is likely to keep on rising gradually. The halving event that will take place in 2024 should help to push the price of Bitcoin up. Some analysts predict that Bitcoin will reach $62.192 by the end of 2024. 
### Is it a good time to buy Bitcoin in 2023?
It seems that 2023 is the best time to buy bitcoin since we are heading towards the next halving event which is likely to take place in 2024. Usually, the price of Bitcoin increases as we head towards a halving event or soon after that event. 


<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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The recent BTC surge above $30K led to the liquidation of many short trades resulting in large losses for the traders.

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Bitcoin Surge to $30K Resulting in Short Traders’ Largest Loss in 2 Months