BTC Price Aims for 5% Dip to Liquidate $2B Bitcoin Longs

Bitcoin is facing a critical situation as traders are making large bets on its price trajectory. Data from CoinGlass, a monitoring resource, reveals that if Bitcoin drops by just $3,000 from its current levels, it will liquidate approximately $2 billion worth of BTC long positions. After experiencing a significant drop of $10,000 in a few hours following new all-time highs on March 5, Bitcoin has made a rebound. At the time of writing, the spot price is heading towards $67,400 after the Wall Street open on March 7.

The stakes are high for traders on both sides of the market. CoinGlass emphasizes the potential consequences, indicating that a dip to $64,286 would lead to the liquidation of $2 billion in long BTC positions. If the price drops to $60,000, approximately $2.33 billion in long positions would be liquidated. It is worth noting that this amount is still higher than the bounce zone of the $10,000 red daily candle.

Conversely, breaking the latest all-time high of $69,210 would result in the liquidation of around $1.31 billion in BTC short positions. At $70,000, the total liquidation tally would reach $1.57 billion. These numbers highlight the potential impact on traders’ positions based on Bitcoin’s price movements.

Market volatility is also evident, with BTC/USD experiencing $1,000 price swings within mere minutes after the Wall Street open. Traders are witnessing extreme volatility and adjusting their strategies accordingly. The popular trader Daan Crypto Trades expressed this sentiment, stating, “Doing $1K candles in 1 minute now. Welcome to volatility city.”

The current all-time high range represents a crucial psychological barrier for Bitcoin market participants. Beyond this level, there is still room for price discovery, and some hodlers have been waiting for years to break even on coins purchased during the previous highs in November 2021. Analysts have varying opinions on how high BTC/USD could go, with predictions ranging from six-figure targets to warnings of an imminent top.

One analyst, Michaël van de Poppe, founder and CEO of trading firm MNTrading, believes that Bitcoin is nearing its peak before the block subsidy halving event scheduled for April. He suggests that Bitcoin may reach $70,000 and then experience a correction of around 30%. This prediction aligns with his view that the cryptocurrency has little room left to grow in the short term.

Bitcoin is currently in a precarious situation as traders bet on its price trajectory. The potential liquidation of billions of dollars in positions underscores the high stakes involved. The market is characterized by extreme volatility, as evidenced by rapid price swings within minutes. Analysts have diverse opinions on the future of Bitcoin, with some predicting further growth and others warning of an imminent correction. Traders are navigating this uncertain landscape and adjusting their strategies accordingly.

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