Bitcoin price attracts the attention of investors with its recent strong rise. Approaching $66,000, Bitcoin has reached an important milestone, leading to massive liquidations in the crypto market. This activity in the market shows that if Bitcoin reaches all-time highs, it could cause massive short position liquidations. Here are the details about this rally in Bitcoin price and its possible effects.
Huge Rally in Bitcoin Price: Crossed $66,000
The price of BTC made a huge rally last Tuesday, approaching $66,000. This price action caused more than $200 million in liquidations in the crypto market. Most of these liquidations took place on major crypto exchanges such as OKX and Binance. However, if the Bitcoin price reaches new all-time highs, leveraged positions are expected to be largely liquidated.
According to Coinglass data, $65.2 million worth of BTC derivatives positions were liquidated in the crypto market in the last 24 hours. Of these liquidations, $34.8 million were Bitcoin short positions and $28.15 million were Bitcoin long positions. Market analysts state that the Bitcoin price has entered a new price range with the Bitcoin price crossing $65,000. Renowned crypto analyst Rekt Capital stated that this situation is preparing Bitcoin for a new rally in the range of $ 65,000-71,500.
19 Billion Dollar Short Position Liquidation Approaching
In the event that the BTC price approaches $72,400, about $19 billion worth of short position liquidations are expected to take place. This could cause a huge volatility in the market. Stating that when Bitcoin crosses the $ 65,000 level, it enters a new price range, Rekt Capital emphasized that Bitcoin has created a new set of price movements in the range of $ 65,000-71,500 and that price movements in this region could trigger a new rally.
Market analysts predict that if BTC reaches these levels, it could lead to a massive liquidation in the crypto market and cause prices to rise even higher. If Bitcoin reaches $72,400, it could trigger a $19 billion liquidation of short positions, which would have a huge impact on the market.
Mt. Gox FUD Concerns Overblown
Recently, the crypto exchange Mt. Gox’s 13K BTC transfer caused a huge market backlash. Investors expected a selling pressure similar to the German government’s sale. However, Cryptoquant CEO Ki Young Ju said that Mt. Gox asset liquidations on the BTC market.
Ki Young Ju said that Mt. Gox FUD is exaggerated, emphasizing that since 2023, about $224 billion worth of BTC has been sold and the price of the cryptocurrency has increased by 350 percent. Ju said Mt. Even if Mt. Gox’s $ 3 billion sale takes place on Kraken, this will only correspond to 1 percent of the realized market capitalization increase in the bull cycle, and the market can easily manage this level of liquidity.
Is a New Era of Rise Beginning for Bitcoin?
Bitcoin’s recent rise has caused a stir among market analysts. BTC reaching $66,000 signals a major rally in the crypto market. If this rally continues, the BTC price is expected to reach new highs and short positions are expected to be largely liquidated.
As a result, the rise of the BTC price is creating great excitement in the crypto market. Analysts predict that BTC could reach new highs and short position liquidations could lead to massive volatility in the market. As we at Kriptokoin.com have reported, in such volatile markets, it is important for investors to be cautious and closely monitor market developments.
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