The Bitcoin market is currently on edge, as per prominent analyst Crypto Rover. warn of a potential liquidation event that could negatively affect short position holders.
With Bitcoin trading within a significant consolidation phase, as revealed by Rover, analysis suggests that over $3 billion in short positions could facial liquidation in case Bitcoin reaches a specific price mark again.
Bitcoin Be Careful With This Price Range
According to Rover, the crucial price mark, which is the $71,600 region, is where the $3 billion short liquidation would occur if Bitcoin recovered. Rover’s valuation is based on data gathered from CoinGlass, a renowned derivatives market tracker, indicating substantial liquidity accumulation at higher price levels.
Crypto Rover’s recent warning comes amid a period of turmoil in the crypto market, marked by sharp price movements and increased trading activity.
Particularly, Bitcoin has experienced a sudden decline over the weekend, bringing its price to $62,000 in the zone. However, in the early hours of Monday, the asset showed signs of recovery, briefly reaching a high of $66,797 before returning to its current price of $64,711.
The weekend market downturn saw a record number of liquidations, with more than $1.2 billion worth of Bitcoin long positions liquidated in a single day, according to WhaleWire.
JUST IN: More than $1.2 billion in #Bitcoin longs were liquidated in the last 24 hours amid the market decline, setting a new record. The previous record was US$879 million.
Today, more Bitcoin bulls were liquidated than on any day in the last 15 years.
Another reason why buy… pic.twitter.com/itnwb7rj1d
– WhaleWire (@WhaleWire) April 13, 2024
The liquidation did not stop, like the last data from Coinglass reveals that in the last 24 hours alone, 89,151 traders were liquidated, resulting in a total loss of $266.10 million.
Analyst insights and market dynamics
It is important to note that Bitcoin’s recorded slight recovery comes as Hong Kong regulators granted provisional approval to asset managers to launch Bitcoin and Ethereum exchange-traded funds (ETFs).
Crypto analyst Willy Woo shared his perspective on the potential impact of Bitcoin exchange-traded funds (ETFs) on market dynamics.
According to Woo, introducing the new Bitcoin ETFs could lead to significant price targets, with projections ranging from $91,000 at the bottom of a bear market to $650,000 at the top of a bull market.
The new #Bitcoin ETFs carry price targets of $91,000 at the bottom of the bear market and $650,000 at the top of the bull market, once ETF investors have fully implemented their recommendations from asset managers* **.
These are very conservative numbers. #Bitcoin will surpass the gold threshold when ETFs have…
– Willy Woo (@woonomic) April 15, 2024
Woo’s analysis highlights the growing institutional interest in BTC, asset managers are expected to allocate a substantial portion of their funds to the cryptocurrency.
However, Woo emphasizes that these projections are conservative estimates and that Bitcoin’s market capitalization could exceed that of gold as more capital is deployed into the asset.
Featured image from Unsplash, chart from TradingView
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