Bitcoin Bears Beware: $3 Billion Short Liquidation Looms At This Price Mark, Warns Analyst
April 16 2024 - 12:00AM
NEWSBTC
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. Related Reading:
Bitcoin Bonanza Before The Halving? Analyst Sees Pre-Crash Buying
Window 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. 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. 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. JUST IN: Over $1.2 Billion in #Bitcoin longs have been
liquidated over the last 24 hours, amid market decline, setting a
new record. The previous record was $879M. Today, more Bitcoin
bulls have been liquidated than on any day in the last 15 years.
Another reason why buying up… pic.twitter.com/itnwb7rj1d —
WhaleWire (@WhaleWire) April 13, 2024 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. 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. The new #Bitcoin ETFs brings price targets of $91k at the bear
market bottom and $650k at the bull market top once ETF investors
have fully deployed according to asset manager recommendations***.
These are very conservative numbers. #Bitcoin will beat gold cap
when ETFs have… — Willy Woo (@woonomic) April 15, 2024 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. Related Reading: The Ultra
Wealthy Are Investing Big Time In Bitcoin, Barbara Goldstein
Reveals 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
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