5% Drop in Bitcoin Could Trigger a $2 Billion Liquidation of Long Positions

Bitcoin traders are delicately wagering on the imminent conclusion of the current sideways movement in BTC price.

Source:www.ekonomist.com.tr

Traders are placing substantial bets on the direction of BTC's price, with data indicating that if it falls just $3,000 from its current levels, it could trigger the liquidation of $2 billion worth of BTC long positions.

Bitcoin Trader Remarks Welcome To The World Of Volatility

Following a rapid $10,000 decline mere hours after reaching new all-time highs on March 5, Bitcoin has since bounced back, creating an intriguing scenario across exchanges. Traders are heavily wagering on both ends of the current spot price, which is trending towards $67,400 as of the time of writing after the Wall Street open on March 7, according to data from Cointelegraph Markets Pro and TradingView. This underscores the significant stakes involved: A dip to $64,286, for instance, could result in the liquidation of $2 billion worth of long BTC positions. Furthermore, a drop to $60,000 would trigger the liquidation of $2.33 billion in longs, which remains above the bounce zone following the $10,000 red daily candle.

On the other hand, surpassing the most recent all-time highs of $69,210 would result in the liquidation of approximately $1.31 billion worth of BTC shorts, with the figure rising to $1.57 billion at $70,000. BTC/USD experienced a $1,000 surge followed by a rapid decline within minutes after the recent Wall Street opening. Popular trader Daan Crypto Trades responded on X, saying, Now seeing $1K candles in just 1 minute.

New Warning Of A 30% BTC Price Correction

The all-time high region serves as a notable psychological hurdle for current participants in the Bitcoin market. Furthermore, price discovery lies ahead, as certain hodlers have been patiently waiting for years to merely break even on coins acquired during the previous highs in November 2021. Analysts hold a wide range of opinions regarding how high BTC/USD could potentially rise, with some forecasting six-figure targets while others anticipate an approaching market peak.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.