Bitcoin Bears Beware: $3 Billion Short Liquidation Looms At This Price Mark, Warns Analyst

Share This Post

The Bitcoin market is currently on edge as prominent analyst Crypto Rover warns of a potential liquidation event that could negatively affect the short holders.

With Bitcoin trading within a significant consolidation phase, as revealed by Rover, analysis suggests that over $3 billion in short positions could face liquidation should Bitcoin climb back to a specific price mark.

Bitcoin Bears Beware Of This Price Range

According to Rover, the crucial price mark, which is the $71,600 region, is where the $3 billion short liquidation would occur if Bitcoin reclaims it. Rover’s assessment is based on data gathered from CoinGlass, a renowned derivative market tracker, indicating a substantial liquidity accumulation at higher price levels.

BTC Liquidation Heatmap.

The recent warning from Crypto Rover comes amidst a period of turbulence in the crypto market, marked by sharp price movements and heightened trading activity.

Particularly, Bitcoin experienced a sudden decline over the weekend, bringing its price to as low as $62,000 in the zone. However, in the early hours of Monday, the asset showed signs of recovery, briefly reaching a high of $66,797 before retracing to its current price of $64,711.

Bitcoin (BTC) price chart on TradingView

The market downturn over the weekend witnessed a record number of liquidations, with over $1.2 billion in Bitcoin long positions liquidated in a single day, according to WhaleWire.

The liquidation hasn’t stopped, as the latest data from Coinglass reveals that in the past 24 hours alone, 89,151 traders have been liquidated, resulting in a total loss of $266.10 million.

The crypto market liquidation heat map

Analyst Insights And Market Dynamics

It is worth noting that Bitcoin’s recorded slight recovery comes as Hong Kong regulators granted provisional approval for asset managers to launch spot Bitcoin and Ethereum exchange-traded funds (ETFs).

Crypto analyst Willy Woo has shared his perspective on the potential impact of Bitcoin exchange-traded funds (ETFs) on market dynamics.

According to Woo, introducing the new Bitcoin ETFs could lead to significant price targets, with projections ranging from $91,000 at the bear market bottom to $650,000 at the bull market top.

Woo’s analysis underscores the growing institutional interest in BTC, with asset managers expected to allocate a substantial portion of their funds to the cryptocurrency.

However, Woo emphasizes that these projections are conservative estimates, and Bitcoin’s market capitalization could exceed gold as more capital is deployed into the asset.

Featured image from Unsplash, Chart from TradingView

Read Entire Article
spot_img

Related Posts

Ethereum Flashes Bullish Signals, Can It Rally 50% From Here?

The second-largest crypto token by market cap, Ethereum (ETH), finally showed some form of life as it rose to $3,300 over the weekend This move is believed to be the beginning of a trend reversal for

ETH Gate Conversation Intensifies After Ripple CTO And Cardano Founder Debate

Over the weekend, the conversation about the ETH Gate theories started again after the news of the Consensys lawsuit against the US Securities and Exchange Commission (SEC) The discussion intensified

Analysts clash over future of Bitcoin ETFs as institutional interest lags

Quick Take Jim Bianco, head of Bianco Research, has been a vocal critic of the Bitcoin ETFs due to their centralization concerns Bianco recently said: “A spot ETF is NOT, repeat not,

Shiba Inu’s Decentralized Exchange ShibaSwap Expands To Shibarium

Shiba Inu has announced the expansion of its decentralized exchange (DEX), ShibaSwap, to include support for Shibarium, its related Ethereum Layer 2 (L2) blockchain This development introduces

This Bitcoin Metric Foreshadowed Recent Price Drops, Quant Reveals

A quant has pointed out how a Bitcoin metric may have detected selling pressure in the market, and therefore, the subsequent price drops, in advance Bitcoin CDD Registered Spikes Before Recent Price

Small Bitcoin holders are accumulating even as prices fall

Tracking the changes in the supply held by entities with various Bitcoin balances provides insight into investor behavior and potential price movements Each category of holder—from individual
- Advertisement -spot_img