Bitcoin at $72,000 Could Trigger Wave of Liquidations, Propel Crypto to Record Highs
Summary:
Analyst Willy Woo suggests that Bitcoin hitting the $72,000 mark could cause a wave of mass liquidations, paving the way for new all-time highs, potentially reaching the $75,000 threshold. With Bitcoin up by 4.8% over the week, a further leap could liquidate $800 million worth of leveraged short positions, potentially surging it past the $72,500 mark and prompting the liquidation of $1.2 billion worth of positions.
Bitcoin's price hitting $72,000 could propel it to surpass the significant $75,000 threshold. This prediction comes from analyst Willy Woo, saying that achieving $72,000 will serve as a catalyst that triggers a surge in liquidations, potentially propelling the cryptocurrency to unseen heights. On June 5, Woo informed his 1.1 million followers that reaching $72k will instigate a chain reaction of liquidations totaling $1.5 billion up to $75k, setting a new record high.
Accumulating a 3.15% increase over 24 hours leading to 8:05 am UTC on June 5, Bitcoin was trading at $71,124. The pioneering cryptocurrency has seen a weekly growth of 4.8%, as per CoinMarketCap data.
The encumbrance for Bitcoin currently lies at the $71,500 and $72,000 milestones. A leap over $72,000, as CoinGlass points out, would result in the liquidation of leveraged shorts worth $800 million across exchanges. Surpassing the $72,500 mark, a further $1.2 billion in leveraged short positions will be liquidated. As of now, Bitcoin is 3.4% lower than the previous record of $73,740 from March 14.
Expert analyst, Rekt Capital, suggests that the Bitcoin post-halving "danger zone" concluded on May 6, when Bitcoin consistently traded above the $60,000 levels. Bitcoin has seen a 12.5% increase since May 6, officially marking the end of the post-halving risk period.
However, Bitcoin still needs to conquer and hold the $72,000 point for it to initiate a parabolic phase of the bull cycle, Rekt Capital further explained.
Bitcoin's price finally broke the two-week downtrend on June 3, according to Rekt Capital. Yet, the cryptocurrency still needs to bypass the $72,000 resistance to enter its parabolic phase. A daily close beyond the downtrend is necessary.
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Published At
6/5/2024 11:51:04 AM
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