Bitcoin‘s price has once again soared, surpassing its all-time high of $72,380 today. This surge has put a record number of short positions at risk, with the possibility of a billion-dollar liquidation looming with less than a 10% price movement. But what level is this?
The Danger Looming Over Short Positions as Bitcoin Price Rises
Cryptocurrency trader and analyst Ash Crypto shared a chart indicating the number of short positions at risk as the Bitcoin price rises. This chart showed that the liquidation risk for short positions has exceeded one billion dollars.
These short positions, held by many crypto investors anticipating a price drop, have surged along with the price. However, with Bitcoin’s price exceeding $72,000 and the increased risk of liquidation, these position holders may need to reconsider their strategies.
If Bitcoin surpasses $75,000, it will be detrimental for these positions. At this level, the liquidation of one billion dollars in short positions is expected. Ash Crypto emphasized that “if BTC exceeds $75,000, a billion dollars in short positions will be liquidated.”
When Will Bitcoin’s Price Rise Stop?
There are no signs that Bitcoin’s price will stop rising anytime soon. With a 10.33% increase last week, Bitcoin’s price is still on an upward trend. However, analysts continue to debate the future movements of the price.
Cryptocurrency analyst MarcPMarkets suggests that the Bitcoin price could reach resistance and then fall back below $70,000. He also notes that if the price exceeds $71,500 and closes at this level, a positive price movement could continue.
Currently, Bitcoin is trading above $71,700, indicating it has surpassed the level mentioned by the analyst. The next significant milestone will be a daily close above $71,500, as this could trigger an incredible price surge. In this case, Bitcoin’s price could rise to $80,000 following this breakout.
Bitcoin, the flagship of cryptocurrencies, surpassing $71,000 has had a significant impact on investors in the last day, with traders losing over $333 million. Interestingly, according to Coinglass data, most of the liquidations (64.29%) occurred in long positions. The price of Bitcoin was $71,639 while writing this article.
