The Bitcoin price rally continues to heat up, nearing $66,000 on Tuesday. This surge resulted in over $200 million in liquidations across the cryptocurrency market, highlighting the potential for significant volatility.
Short Sellers Feeling the Squeeze
Data reveals that Bitcoin’s price surge triggered over $65 million in liquidations within the last 24 hours. Notably, $34.8 million of these were short positions, indicating that investors betting on a price decline were forced to buy back Bitcoin at a loss. This short squeeze further fueled the upward momentum.
Analysts at Coinglass predict that if Bitcoin surpasses $72,400, short liquidations could reach a staggering $19 billion. This scenario underscores the high leverage employed by some traders, amplifying price movements in both directions.
Bitcoin Poised for Further Uptrend?
The recent price rally has instilled a sense of optimism among market analysts. Many believe the downtrend may be over, paving the way for a significant upswing. Popular analyst Rekt Capital suggests Bitcoin’s breach of $65,000 signifies entry into a new price zone, potentially leading to a rally towards the $65,000-$71,500 range.
Mt. Gox Concerns Waning
The recent transfer of 13,000 Bitcoin by the defunct Mt. Gox exchange initially triggered fears of selling pressure similar to the German government’s Bitcoin sales. However, Cryptoquant CEO Ki Young Ju downplayed these concerns. He highlighted that despite over $224 billion in Bitcoin being sold since 2023, the price has still managed to surge by 350%. Young Ju argues that even if Mt. Gox were to liquidate its $3 billion holdings, it would represent a small fraction of the overall market activity, unlikely to significantly disrupt the current momentum.
Bitcoin’s future trajectory remains uncertain, but the recent rally and short squeezes suggest a potential shift in market sentiment. With analysts cautiously optimistic and Mt. Gox fears subsiding, all eyes are now on whether Bitcoin can sustain its momentum and reach new highs.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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