Liquidation of $31 Million Is Expected If BTC Price Reaches $68.5 Thousand
In what is expected to be a bearish reversal for Bitcoin, the world’s first digital currency, a leading crypto market analyst recently noted that a significant liquidation is likely to occur for the token as its price gains upward momentum in the broader crypto market. Following the recent corrections witnessed by BTC, this statement shared by the analyst immediately gained significant traction with today’s rally pushing the token closer to the $67.5k level.
If Bitcoin reaches $68,500, a liquidation of $31 million will remain in place to meet the price trend. This led to a bearish trend on the world’s first digital currency, indicating that BTC could see another correction following its recent rally. Meanwhile, the token is trading prominently in green as of the moment the news was published.
Bitcoin’s Volatility Increases Vulnerability
After the new ATH recently scaled past $73k, Bitcoin suffered a significant decline due to market corrections, pulling the token back to $61k. However, as the market recovered, BTC recorded a phenomenal increase, as mentioned above.
Amid this broader recovery trend, analyst Ali Martinez pointed out that $31 million of BTC would be liquidated if the price reached $68.5k. This significant impending liquidation, triggered by investors going short on Bitcoin, reflected a frenzy on the crypto horizon as the broader market braced itself for a bull run.
Meanwhile, a drop of 311,000 total non-0 coin wallets on the Bitcoin network over the last ten days, according to data from Santiment, has additionally triggered a bearish vortex and attracted the attention of investors as the chances of an altcoin season outperforming BTC’s rally progress. As small wallets sell Bitcoin and larger wallets accumulate these BTC tokens, historical patterns have suggested that Bitcoin offers notable positive returns before this trend of small and large wallets selling and accumulating ends. However, BTC made a pumping move today, attracting the attention of crypto market traders and investors globally. A prolonged push could result in the liquidation mentioned above, resulting in a potential correction.
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Bitcoin Springs
At the time of writing, Bitcoin price has recorded a significant increase of 7.42% in the last 24 hours and is currently trading at $67,389. Although a significant amount of new money entered the market as investors showed a readiness to invest more in long positions, the token’s derivatives data pointed to a decrease in market activity. With a 17% decline in volume, an 8% increase in open interest, and a jump in the OI-weighted funding rate to 0.0180%, the ongoing bullish momentum for Bitcoin could continue. Technical indicators also pointed to buying sentiment in the market, contributing to potential gains ahead.
However, in line with the analyst’s statement, if Bitcoin reaches $68.5K, a liquidation of $31 million due to short selling could pull the price to witness further correction.
Also Read: ripple and SEC Update: Judge Torres Thinks XRP Case Extension Is Fair Enough
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