The largest cryptocurrency Bitcoin (BTC), after a short period of dropping below $51,000, has made a significant recovery. Investors are pointing to Bitcoin‘s price heading towards the $52,000 level and signaling a renewed upward momentum in the market. Analysts are warning that BTC exceeding the $52,200 threshold could have significant implications for traders.
$52,200 Becomes a $1 Billion Liquidation Threshold
Leading cryptocurrency analyst Crypto Rover recently stated that if Bitcoin’s price reaches $52,200, over $1 billion worth of large short positions could be liquidated. In such a scenario, short sellers would rush to buy Bitcoin to close their positions, potentially triggering an increase in buying pressure and pushing the price even higher.
With this increased demand, Bitcoin could reach new highs between $54,000 and $58,000, as predicted by other analysts like Michael van de Poppe.
Despite optimistic expectations, analysts like Poppe also warn of a potential major correction in the price of the largest cryptocurrency after the Bitcoin block reward halving in April. Poppe predicts that this correction could bring Bitcoin’s price down to $40,000. Such a scenario could be seen even before the halving if traders begin to open short positions in advance.
Another analyst, Ali Martinez, also expressed similar views regarding potential liquidations. Martinez forecasts a total liquidation of $76.38 million if Bitcoin’s price exceeds $52,250. While the analyst’s prediction aligns with Crypto Rover’s warning, the figures imply significant potential losses for traders. Therefore, as Bitcoin’s price continues to climb, investors and traders being prepared for the highlighted scenarios could provide protection.
Whale Invests $205.3 Million in Bitcoin
Amidst market volatility, a Bitcoin whale has made headlines by accumulating 4,000 BTC. According to on-chain data, the cryptocurrency whale transferred the purchased BTC worth $205.3 million through a Japanese cryptocurrency exchange, Coincheck, to an unknown wallet.
Current data shows Bitcoin’s price experiencing slight fluctuations, trading down 1.01% at $51,082. The largest cryptocurrency’s trading volume has also decreased by 7.94% to $14.96 billion in the last 24 hours. Despite this decline, Bitcoin maintains a strong market value of $1.01 trillion, indicating that investors’ interest in the cryptocurrency continues.
