Bitcoin Price at $72K Could Trigger New ATH with $1.5B Liquidations, Analyst Says
The price of Bitcoin is on the verge of a significant milestone that could have far-reaching implications for the cryptocurrency market. If Bitcoin’s price were to rise above $72,000, it would trigger a cascade of liquidations totaling $800 million in leveraged short positions. This level is seen as a critical barrier that, once breached, could pave the way for Bitcoin to surpass the psychological barrier of $75,000 and reach new all-time highs.
According to Willy Woo, an analyst with a large following, reaching $72,000 would set off a chain reaction of liquidations, with $1.5 billion in short positions ready to be liquidated all the way up to $75,000. The price of Bitcoin has been steadily climbing, with a 3.15% increase in the past 24 hours, reaching $71,124. This marks a weekly increase of 4.8%, according to data from CoinMarketCap.
The resistance at $71,500 and $72,000 is significant, with a potential liquidation of $800 million in leveraged short bets if Bitcoin were to surpass these levels. Breaking through $72,500 would trigger even more liquidations, totaling over $1.2 billion. Bitcoin has faced challenges since reaching its previous all-time high of $73,740 on March 14, with a 3.4% drop following that peak.
Analysts suggest that Bitcoin is now in a position to break out of a two-week downtrend, with the potential to enter a “parabolic phase” of the bull cycle if it can overcome the $72,000 resistance level. This milestone could mark a turning point for Bitcoin and the broader cryptocurrency market.
Overall, the cryptocurrency market is closely watching Bitcoin’s price movements, as they could have a significant impact on the market as a whole. Stay tuned for updates on this developing story.
