Bitcoin (BTC) is poised to trigger the liquidation of $2 billion worth of BTC long positions if its price drops by just $3,000 from its current levels, according to data from monitoring resource CoinGlass. Traders are taking significant bets on the trajectory of BTC’s price, resulting in a volatile market. After experiencing a sharp drop of $10,000 following new all-time highs on March 5, Bitcoin has since rebounded, creating an interesting situation on exchanges.
Traders are making large bets on both sides of the current spot price, which is currently heading towards $67,400. CoinGlass highlights the significant stakes involved, noting that a dip to $64,286 would liquidate $2 billion worth of long BTC positions. If the price were to reach $60,000, $2.33 billion worth of longs would be liquidated, still higher than the bounce zone of the $10,000 red daily candle.
On the upside, surpassing the latest all-time high of $69,210 would result in the liquidation of approximately $1.31 billion worth of BTC shorts, with the tally reaching $1.57 billion at $70,000.
The BTC/USD pair has demonstrated its market capability with a $1,000 move up and down in a matter of minutes after the latest Wall Street open. This volatility has caught the attention of traders, with one popular trader noting the quick price fluctuations.
The all-time high area represents a significant psychological barrier for Bitcoin market participants, and price discovery awaits beyond this point. Some hodlers have been waiting for years to break even on coins purchased at the previous highs in November 2021.
Analysts have varying opinions on how high BTC/USD could go, with some predicting six-figure targets while others anticipate an imminent top. Michaël van de Poppe, founder and CEO of trading firm MNTrading, suggests that Bitcoin may soon reach $70,000 before experiencing a correction. He also argues that the correction, when it occurs, could be as much as 30%.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.