Observers warn that Bitcoin is no longer in an ‘easy mode’ and anticipate a wipeout of leverage.

Traders who have leveraged positions in Bitcoin (BTC) may face an unpleasant surprise as the cryptocurrency reaches a critical juncture, warn analysts. Pseudonymous trader HoneyBadger stated that market makers are taking advantage of high emotions and reckless behavior, causing significant liquidations of leveraged positions. Over the past 24 hours, $39 million worth of leveraged positions in Bitcoin were liquidated, with $18.38 million in long positions and $20.62 million in short positions. HoneyBadger pointed out that the Bitcoin price chart is forming a symmetrical triangle, indicating a neutral pattern. He cautions that traders who interpret it as a “retest of the triangle” and enter long positions with confidence may be caught off guard by a fakeout. On the other hand, Andrew Kang, co-founder of Mechanism Capital, is optimistic and believes that the upward trend will continue after the Bitcoin halving on April 20, with a target of $80,000 by May. Currently, Bitcoin is trading at $70,500, having tested its support level of $68,500 multiple times in the past week. The recent drop in Bitcoin’s price following the release of US inflation data has raised concerns. Traders have taken increased leveraged positions in the past few days, making them more vulnerable to a similar drop. If Bitcoin’s price increases by 5% to $73,819, approximately $2.14 billion in short positions will be liquidated. Conversely, if the price drops by 5% to $66,671, around $1.63 billion worth of long positions will be liquidated. HoneyBadger and other traders are choosing to stay on the sidelines due to volatility and are not worried about missing out on short-term price movements. They believe it is better to wait for the right moment rather than rush into trades. Ultimately, each individual should conduct their own research and make informed decisions when it comes to investing and trading.