Bitcoin (BTC) has become the center of attention for traders as they make significant bets on its price trajectory. According to data from monitoring resource CoinGlass, if BTC drops by just $3,000 from its current levels, it will result in the liquidation of $2 billion worth of BTC long positions. After experiencing a sharp decline of $10,000 following new all-time highs on March 5, Bitcoin has since rebounded, creating an interesting situation on exchanges.
Traders are placing large bets on both sides of the current spot price, which is currently heading towards $67,400. CoinGlass highlights the magnitude of these bets, stating that a dip to $64,286 would liquidate $2 billion worth of long BTC positions, while a drop to $60,000 would result in the liquidation of $2.33 billion worth of longs.
On the other hand, breaking the latest all-time highs of $69,210 would lead to the liquidation of approximately $1.31 billion worth of BTC shorts, with the figure rising to $1.57 billion at $70,000. These figures demonstrate the volatility and high stakes involved in Bitcoin trading.
BTC/USD has recently witnessed a $1,000 price swing within minutes of the Wall Street open. This rapid price movement highlights the market’s capability for sudden shifts. The all-time high area represents a significant psychological barrier for Bitcoin market participants, and beyond this, price discovery awaits. Some hodlers have been patiently waiting for years to break even on coins they purchased during the previous highs in November 2021.
Opinions among analysts regarding the potential future price of BTC/USD vary greatly, with some predicting six-figure targets while others anticipate an imminent top. Michaël van de Poppe, the founder and CEO of trading firm MNTrading, believes that Bitcoin may soon reach $70,000 before experiencing a correction. He also suggests that the correction could be as high as 30%, emphasizing the importance of the upcoming block subsidy halving event in April.
It is important to note that this article does not provide investment advice or recommendations. Readers are advised to conduct their own research and analysis before making any investment or trading decisions.