The post Bitcoin’s Golden Cross Set to Spark Massive Rally as $10 Billion Short Squeeze Looms! appeared first on Coinpedia Fintech News
Bitcoin is going through a big change as more investors decide to hold onto their assets, showing rising trust in its long-term value, even with market ups and downs. Therefore Bitcoin’s recent movements have put traders on high alert, as top analyst MartyParty warns of a $10 billion short squeeze that could push the crypto currency’s price to new levels.
$10 Billion In Short To Liquidate
According to well-known crypto analyst MartyParty, Bitcoin’s current price levels suggest that many leveraged short trades could face liquidation, triggering a buying frenzy.
Heat Map Warning : Possible short squeeze alert At $66200 $10b shorts will be liquidated. A liquidated short leverage trade is a Spot buy. This can trigger a short squueze into the $16b liquidations sitting at $70300 which can squeeze into the $18b at $72578. pic.twitter.com/ochP0qn1Ew
— MartyParty (@martypartymusic) October 7, 2024
As Bitcoin approaches $66,200 MartyParty notes that at this level, an estimated $10 billion in short positions are at risk of liquidation. In a short squeeze, liquidated short trades automatically convert to spot buys, pushing Bitcoin’s price higher as shorts are closed out.
MartyParty further suggests that, if this level is breached, it could set off a chain reaction of liquidations, propelling the price up toward $70,300. Here, an additional $16 billion in shorts sit vulnerably, and further up, at $72,578, a potential $18 billion in short trades could be liquidated.
Bitcoin Nears Golden Cross Breakout
Looking at the technical analysis, Bitcoin is on the edge of forming a “Golden Cross” on its weekly chart, hinting at a possible rally with its price at $62,452. However, indicators like the MACD, which helps show price momentum, are pointing upward, and selling pressure has started to ease, showing that more investors may be willing to hold rather than sell.
Bitcoin about to make a Golden Cross (50d over 200d)get ready… pic.twitter.com/PZejRcpt5J
— Altcoin Daily (@AltcoinDailyio) October 7, 2024
Bitcoin’s steady trading volume and its recent 0.63% price gain are further boosting confidence among traders that a rally could be around the corner.
In the past, Bitcoin’s first Golden Cross of 2020 led to one of its strongest growth periods, followed by another Golden Cross in mid-2021, when Bitcoin’s price reached $70,000. This historical pattern suggests that if a similar cross forms again, it could signal another major price jump.
