Bitcoin Price Crash Could Trigger $3 Billion Liquidation

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In his latest video analysis, Crypto Rover in his new youtube video went deep into the complexities of Bitcoin’s current market dynamics followed by the completion of the halving process. With a keen eye on the charts, Rover observes Bitcoin’s resilient behavior as it rebounds towards the upside, potentially transforming previous resistance levels into supportive foundations. This reversal in trend prompts Rover to explore the significance of liquidity patterns, particularly highlighting the emergence of negative funding rates. A good time to invest? Let’s understand the mechanism. 

Analyst Warns for a Massive Liquidation 

Drawing on historical references, Rover emphasizes that negative funding rates are a bullish indication, traditionally linked to market upswings. He thoroughly investigates the liquidity situation, pointing out the significant liquidity building above Bitcoin’s price. Rover says $71,600 is necessary. If Bitcoin regains this position, a $3 billion short liquidation is possible. Rover bases her prediction on CoinGlass, a recognized derivative market tracker, which shows significant liquidity at these high prices.

Historically a Buying call!

Despite short-term fluctuations, there’s optimism for further gains, with the next resistance target identified as around $67,000.

Furthermore, the analyst noted the importance of staying vigilant amid market volatility, particularly with the emergence of another CME Futures Gap. However, negative funding rates were cited as a positive indicator, historically signaling a buying opportunity and marking the bottom of the market. Plus, the accumulation of over $2.8 billion in liquidations above current levels indicates a potential push toward higher prices.

Also check Out : When Will Bitcoin Surge Post-Halving 2024? 

The Current Stats

Over the weekend, Bitcoin experienced a sudden dip, plummeting to a low of $62,000, followed by a brief recovery to $66,797 before settling at $64,711. This volatility led to a record number of liquidations, totaling over $1.2 billion in long positions, highlighting market unease. Recent data from Coinglass indicates ongoing liquidations, with 89,151 traders losing $266.10 million in the past 24 hours. Despite the turmoil, Bitcoin has managed minor gains, coinciding with Hong Kong regulators’ approval of spot Bitcoin and Ethereum ETFs

Read Also : Here’s Why The Crypto Market Is Down Today!

Crypto expert Willy Woo before halving predicted that these ETFs could drive Bitcoin’s price to ambitious targets, ranging from $91,000 to potentially surpassing gold’s market capitalization. Woo suggests a rise in institutional investor interest could boost further capital inflows into Bitcoin, potentially leading to even higher valuations.