In what is expected to be a bearish turn for Bitcoin, the world’s first-ever digital currency, a leading crypto market analyst recently spotlighted a significant liquidation ahead for the token as its price regains upward momentum within the broader crypto market. Following recent corrections witnessed by BTC, this statement shared by the analyst promptly gained substantial traction as today’s pump pushed the token nearing the $67.5K mark.
Should Bitcoin reach $68,500, a $31 million liquidation remains poised to encounter its price trajectory. This painted a tint of bearish sentiments on the world’s first-ever digital currency, hinting that a correction may be witnessed again following BTC’s recent surge. Meanwhile, the token prominently traded in the green as of press time.
Bitcoin’s Surge Augments Vulnerability
Following the recent scaling of a new ATH, Bitcoin witnessed quite a drop due to market corrections, pulling the token back to $61K. However, as the market recovers, BTC noted a phenomenal pump, as mentioned above.
Amid this broader recovery trend, analyst Ali Martinez spotlighted a $31 million liquidation for BTC if the price hits $68,5K. Triggered by investors’ shorting of Bitcoin, this substantial upcoming liquidation echoed a frenzy across the crypto horizon as the broader market contrastingly readied itself for a bull run.
Meanwhile, a 311K drop in the total non-0 coin wallets on the Bitcoin network over the past ten days, per Santiment’s data, additionally stirred a whirlpool of bearishness, nabbing investor attention as chances of an altcoin season outperforming BTC’s rally inched ahead. With small wallets’ selling off Bitcoin, coupled with larger wallets’ accumulation of these BTC tokens, historical patterns suggested that Bitcoin offered notable positive returns before this selling and accumulating trend of small and large wallets ended. Coming in tandem with this, BTC mirrored a pump today.
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Bitcoin Springs
When writing, the Bitcoin price noted a substantial 7.42% uptick in the past 24 hours and is currently trading at $67,389. The derivatives data for the token signaled reduced market activity, although significant new money entered the market with investors showcasing a readiness to invest more in long positions. With a 17% drop in volume, accompanied by an open interest surge of 8% and an OI-weighted funding rate jump to 0.0180%, a continued upward momentum for Bitcoin may persist. Technical indicators further hinted at a buying sentiment in the market, adding to potential gains ahead.
However, aligning with the analyst’s statement, should Bitcoin hit $68.5K, a $31 million liquidation due to short selling may pull the price to witness further corrections.
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