Bitcoin Risks $2B Liquidation if Value Drops by $3,000, Amid High-Stakes Betting
Summary:
Bitcoin (BTC) could experience a $2 billion liquidation of long positions if its value drops by $3,000, according to data from CoinGlass. This prediction comes amid massive bets on Bitcoin's price trajectory following its recent recovery from a $10,000 drop. A decline to $64,286 would trigger a $2 billion liquidation, and a drop to $60,000 would result in a $2.33 billion liquidation. Conversely, surpassing the latest high of $69,210 would lead to a $1.31 billion liquidation of BTC shorts. Notable trader Daan Crypto Trades and MNTrading CEO Michaël van de Poppe have commented on Bitcoin's potential peak and impending correction.
A $2 billion liquidation of Bitcoin (BTC) long positions could be on the cards should BTC's value tumble by a mere $3,000 from its current standing, according to market monitoring resource CoinGlass. Traders are high-stakes gambling on Bitcoin's price trajectory given its notorious volatility. Bitcoin managed a recovery after a $10,000 plunge within hours after achieving new record highs on March 5, leading to a tense atmosphere across exchange platforms. According to data gleaned from Cointelegraph Markets Pro and TradingView, traders are making large wagers on both sides of the current spot price, pushing towards $67,400 as of the Wall Street opening on March 7. CoinGlass's data emphasizes the high-risk stakes— a modest decline to $64,286 would lead to a $2 billion liquidation of BTC long positions. Meanwhile, Bitcoin sinking to $60,000 would see $2.33 billion of longs being liquidated, still a higher figure than the bounce back zone of the $10,000 red daily candle. However, surpassing the most recent record high of $69,210 would result in around $1.31 billion BTC shorts being liquidated, with that figure rising to $1.57 billion at $70,000. Bitcoin's exchange liquidity map reinforces the volatile nature of the market. After the latest Wall Street opening, BTC/USD experienced a $1,000 fluctuation within a matter of minutes. Widely-followed trader Daan Crypto Trades responded to the fluctuation by saying “Doing $1K candles in 1 minute now,” “Welcome to volatility city.” Analysts' views on Bitcoin's potential peak remain varied, with some predicting six-figure targets while others foresee an impending peak. Notably, Michaël van de Poppe, CEO and founder of the MNTrading firm, belongs to the latter group. He recently suggested that Bitcoin has limited room for further growth ahead of April's block subsidy halving event, and warned that the impending correction could be as large as 30%. As always, investment and trading carry associated risks and readers are advised to independently research before making any financial decisions.
Published At
3/7/2024 7:37:55 PM
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