Bitcoin ($BTC) is witnessing a crucial market scenario while facing the possibility of massive short liquidations. Hence, the price surge of Bitcoin ($BTC) could lead to a huge liquidation of up to $8.5B in short positions. As per the data from Ash Crypto, a well-known crypto analyst, this aligns with the data from the Bitcoin Exchange Liquidation Map of Coinglass. In this respect, the market is reportedly reaching a crucial inflection point.
$8.5B Liquidation in Short $BTC Positions Looms as Flagship Crypto Asset Eyes Breakout above $95K
The exclusive market statistics highlight that Bitcoin ($BTC) is facing the likelihood of a staggering $8.5B in liquidations in short positions in case of a 15% price spike. At the moment, the market sees the dominance of exposure to short $BTC positions. Therefore, a notable price increase could liquidate the respective positions. Particularly, the $87K-$95K range is experiencing the formation of huge clusters of short liquidations. Keeping this in view, a spike above the respective resistance area could lead to a trend of Bitcoin’s liquidations in short positions.
Bitcoin’s Price Moves toward Potential 15% Breakout, Raising Caution for Short Position Holders
According to Glassnode’s data, Ash Crypto has expressed caution over broader liquidations in short Bitcoin positions if price jumps over 15%. Currently, the flagship cryptocurrency is hovering around $86,524.88, presenting a 2.29% price rise over 24 hours. Along with that, its market cap has hit $1.72T with a 2.42% increase. Thus, traders are advised to cautiously monitor liquidation maps to avoid likely losses. Moreover, the breakout above the aforementioned resistance could pave the way for forced backs, pushing toward upward momentum and renewing bullish sentiment around Bitcoin ($BTC).
Source: https://blockchainreporter.net/bitcoin-faces-potential-short-liquidations-of-8-5b-in-case-of-price-spike/
