Bitcoin (BTC) price broke out of range on Feb. 27, rising more than 12% to hit a multi-year high at $57,010 on Feb. 27. The last time Bitcoin traded above $57,000 was more than two years ago on Dec. 2, 2021, when the price dropped from an opening of $57,327 before setting a swing low around $15,000 during the extended bear market in 2022.

BTC/USD daily chart. Source: TradingView

The current rally has seen BTC's trading volume jump 235% in the last 24 hours to $47.6 billion. At the time of writing, Bitcoin's market capitalization was resting at $1.097 billion, cementing its first position as the most valuable cryptocurrency.

Independent analyst Ali spotted Bitcoin trading above $51,500, saying that if bulls hold the position above $50,0000, the big crypto could rise to achieve a "sustained close above $53,000," which "could be the catalyst for a rally toward $60,520!"

Another popular analyst Rekt Capital posted a chart showing the four phases of Bitcoin halving, pointing out that Bitcoin has entered the final prehalving rally.

Rekt Capital warned his over 400,000 followers on X that "The time for deeper pullbacks has ended" and that there will be one last retrace before the halving.

The latest surge in BTC price led to crypto short positions amounting to $271 million being liquidated over the last 24 hours against $107 million long liquidations, according to data from Coinglass. Approximately $162.1 million of Bitcoin shorts were liquidated in the 24 hours against $28.7 million long positions. 

Total crypto liquidations heatmap. Source: CoinMarketCap

The largest single liquidation order happened on Binance for the ETH/USDT pair valued at $10.38 million. 

Investors expect the fresh round of Bitcoin's bullish price action to continue as inflows into spot Bitcoin ETFs increase and the supply halving event draws near.

Bitcoin price analysis

Bitcoin price is now up 28% year-to-date and 133% over the last 12 months. The pioneer cryptocurrency is now less than 20% below the $69,000 all-time high reached on Nov. 10, 2021. 

From here, the buyers will now try and push the price toward the $60,000 psychological level to $65,000 and above the all-time high of $70,000.

The moving averages and the relative strength index supported this bullish outlook for Bitcoin with their upward trajectory. The position of the RSI in the overbought region and the price strength at 80 validated the buyers' dominance in the market.

BTC/USD daily chart. Source: TradingView

On the downside, sellers may decide to take profits on the latest rally to $57,000, triggering a correction. In such a case, Bitcoin may drop first toward the $78.6% Fibonacci retracement level at %3.00 and later $50,000. Such a retrace would result in 11% losses.