Watch Out Bears: Bitcoin’s Rally To This Mark Could Trigger $19 Billion Short Squeeze
18 Julio 2024 - 1:00AM
NEWSBTC
Over the past few days, Bitcoin has seen quite a notable rebound in
its price, rising from as low as the $53,000 level last week to
trading as high as above $66,000 in the early hours of Wednesday
before now retracing to a current trading price of $64,433. This
bullish price performance has been the downfall of approximately
50,436 traders in the crypto market today. Particularly, according
to data from Coinglass, this number of traders has seen massive
liquidations, bringing the current total liquidations to $145.58
million. Bitcoin traders felt the brunt of this total liquidation,
seeing roughly $46.22 million shared evenly between short and long
positions, indicating the asset’s mixed trajectory in the past day
alone. Related Reading: Bitcoin Dominates as Crypto Funds Attract
$1.44 Billion in Fresh Capital, Rally To Begin? Bitcoin: Bigger
Liquidations Incoming While recent trading activities have
triggered millions of dollars in liquidations, further data shows
that this scenario could escalate dramatically, turning into
billions if Bitcoin continues its ascent towards record highs,
breaching a notable mark. Particularly, as reported by MartyParty,
a prominent crypto enthusiast in the community, should Bitcoin’s
price hit $72,400, the market would feel the impact, with nearly
$19 billion in Bitcoin short positions poised for liquidation at
this price point. Marty Party reported this on Elon Musk’s social
media platform X, citing data from Coinglass. Concluding this
disclosure, the crypto enthusiast noted: “Never bet against
technology.” How Long For This Liquidation To Occur? While the
$72,400 price mark might seem like a long stretch from the current
market price, BTC might not take that long to get to this mark,
given the current fundamentals. For instance, the market might be
drawn quicker to this mark as this is where the liquidity lies to
fuel its current trend. Aside from that, no bears are in sight
to slow the asset’s rally from getting there in the short term.
First of all, the German government has sold off all of its BTC
holdings of roughly 49,858 BTC with a current balance below $500,
according to data from Arkham Intelligence. Notably, the current
balance of approximately $427 worth of BTC is the cumulative sats
(small units of BTC) donated from different wallet addresses.
Furthermore, according to recent data from CryptoQuant, 36% of Mt.
Gox BTC has been distributed to creditors. However, despite this
distribution, BTC’s price is yet to see any notable correction,
which suggests two things: that the creditors are not selling, and
even if they are, the Bitcoin market is absorbing it real quickly
as evident in the slight stabilization of BTC’s price. Related
Reading: Bitcoin Price On The Rise: Is The $70K Mark Within Reach?
These major sell-offs by the German government and Mt. Gox, once
considered major threats to the crypto market, now seem to have
minimal impact, indicating that no significant bearish obstacles
prevent Bitcoin from surging to the $72,400 mark, creating a short
squeeze. Featured image created with DALL-E, Chart from TradingView
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