As a seasoned financial analyst with over two decades of experience in the markets, I have seen my fair share of price rallies and market volatility. The recent surge in Bitcoin’s price to within striking distance of $66,000 has been nothing short of extraordinary. With more than $200 million in liquidations across the broader crypto market, it is clear that this rally is causing significant movements in the market.
The price of Bitcoin surged forward towards $66,000 on Tuesday, bringing about over $200 million in liquidations across the cryptocurrency market. Yet, if Bitcoin’s price ascends even higher, reaching new all-time highs, it might trigger substantial short liquidations for those holding leverage positions.
Bitcoin Short Liquidations to Cross $19 Billion?
According to Coinglass’s latest data, over $65.2 million worth of Bitcoin derivatives positions were terminated in the last 24 hours. Among these, about $34.8 million were short positions on Bitcoin, while approximately $28.15 million were long positions. The majority of these liquidations occurred on OKX and Binance crypto exchanges.
If I’m looking at the Bitcoin heatmap, it seems that a surge in price towards $72,400 could trigger around $19 billion worth of Bitcoin short positions being liquidated in the near future.
At $72400 #Bitcoin – $19b of shorts will liquidate.
Never bet against technology.
— MartyParty (@martypartymusic) July 16, 2024
In the current robust Bitcoin price surge, market pundits are convinced that the previous downtrend in BTC has ended, and investors may be anticipating a significant upward trend moving forward. Notably, well-known cryptocurrency analyst Rekt Capital pointed out that once the BTC price surpassed $65,000, it entered a new price range or “cluster zone.”
When Bitcoin surpasses the $65,000 mark (denoted by blue), it will mark the beginning of a new price cluster for Bitcoin around the $65,000 to $71,500 range, according to Rekt Capital’s analysis. Consequently, BTC‘s upward trend may carry on, paving the way for another potential price increase.
#BTC
As an analyst, I would interpret this as follows: Reaching the $65,000 mark for Bitcoin (blue) signifies the formation of a fresh price cluster characterized by red candlesticks.
As a cryptocurrency market analyst, I would interpret reaching a price of $65,000 for Bitcoin as an indication that the price is prepared to shift within the range of $65,000 to $71,500. #Crypto #Bitcoin
— Rekt Capital (@rektcapital) July 16, 2024
Don’t Overestimate Mt. Gox FUD
On Tuesday, Mt. Gox, a cryptocurrency exchange, moved 13,000 Bitcoins, causing a significant response in the market as investors braced for possible additional selling pressure reminiscent of the German government’s sell-off. However, Ki Young Ju, the CEO of Cryptoquant, dismissed concerns regarding the potential repercussions of Mt. Gox’s asset disposals on the Bitcoin market.
Ki Young Ju stated that the negative hype surrounding MtGox’s impact on Bitcoin is exaggerated. With approximately $224 billion worth of Bitcoin sold since 2023, the cryptocurrency’s price has risen by an astounding 350%. He explained that if the $3 billion from MtGox were to be sold on Kraken, it would only equate to a mere 1% increase in the total realized capital gains during this bull market cycle. The market is capable of handling such liquidity.
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2024-07-17 08:14