If the Price Reaches This Level, BTC Will Face a $2.7 Billion Liquidation
Recently, the cryptocurrency market experienced a significant correction and witnessed a sudden decline in the capitalization of the global cryptocurrency market. This pullback coincided with data from the Bitcoin Liquidation Heat Map, indicating a significant Bitcoin short selling potential of $2.7 billion once BTC reaches the critical threshold of $67,000. As of today, the price of Bitcoin (BTC) is at $61,601.75, while the 24-hour transaction volume of the cryptocurrency is recorded as $21.6 billion. Over the last 24 hours, Bitcoin has fallen by -1.62%.
Analysis of Bitcoin’s Price Trends and Impending Liquidation
Despite the threat of an impending $2.7 billion Bitcoin short at $67,000, BTC’s price has remained confined within a broad descending channel pattern characterized by lower ups and downs. While some interpret this price action as indicative of a bear market reversal and bearish trend, the overall momentum is less bearish. The $60,000 support zone has proven resilient multiple times and market sentiment seems to be targeting the upper boundary of the channel.
But breaking the $63,000 barrier presents the next challenge for a potential rally towards a new all-time high. Conversely, a breach of $60.5K could accelerate a decline towards the $52,000 – $55,000 support zone and potentially lead to a market crash.
The Relative Strength Index (RSI) exceeded the 50% mark, signaling a return to bullish momentum. As a result, a break of the $63,500 level could pave the way for a rally towards and potentially beyond the midline of the channel, paving the way for new all-time highs.
The volatile nature of the Coinbase premium gap, particularly the bearish one, highlights significant selling pressure from U.S. investors, including wealthy individuals and institutions, that could impede the continuation of the bullish trend.
So read: Why Cardano Price May Rise 1500% Soon: Analysts Take on ADA
Current Bitcoin Market Outlook and Price Predictions
Following the last red candle on May 10, Bitcoin saw three consecutive daily green candles, gaining 2.1% to $62,634, stabilizing the uptrend. However, the cryptocurrency is poised to remain in an unstable position until the 20-day Exponential Moving Average (EMA) and 50-day EMA support is reclaimed. Despite the slightly bullish outlook of the Moving Average Convergence Divergence (MACD) indicator, the current position at -864 and short green histograms, the potential for sell-side pressure remains a concern.
Investors need to be careful, especially amidst various macroeconomic activities. A decline below $60,000 remains reasonable and the correction is likely to potentially extend to $56,500 or even $50,000. Conversely, positive Consumer Price Index (CPI) data could boost investor confidence and lead to Bitcoin price rising to $70,000. Important milestones that will strengthen FOMO include surpassing the $65,000 and $67,500 resistance areas.
So read: Ethereum ETF Approval Remains in Balance as SEC Issues Important Notice
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