A potential $9.26B short liquidation could trigger a Bitcoin price surge if a new ATH is reached.
Weakening support at $67,200 and lower highs indicate increased selling pressure on Bitcoin.
Bitcoin’s critical support at $63,800 may determine its next significant move amid heightened market uncertainty.
Bitcoin’s market stands at a critical juncture, with potential implications for both bullish and bearish traders. As highlighted by Eljaboom, a Bitcoin investor and Forbes 30 Under 30 recipient, a major liquidation event looms. If Bitcoin reaches a new all-time high (ATH), $9.26 billion in shorts could be liquidated. A few key indicators underscore this potential for a dramatic price surge.
The funding rate has decreased, indicating an increase in short positions. Additionally, the Coinbase Premium has turned positive, suggesting heightened spot demand.
Liquidation 🚨🚨 $9.26 billion worth of shorts will get liquidated when BTC hits a new ATH. The funding rate has gone down (more shorts) Coinbase Premium has turned positive (more spot demand) There would be no surprise if BTC pumps big from here. pic.twitter.com/Gsihg17Cry
— Elja (@Eljaboom) June 18, 2024
As noted in the Rekt Capital newsletter, Bitcoin faced resistance at around $73,000. More recently, resistance has emerged at approximately $71,500, increasing selling pressure. Sellers are eager to offload their holdings at lower levels during rallies, exerting downward pressure on the price.
Moreover, the support level of around $67,200 has weakened. This level provided robust support in early March, sparking a strong rebound. However, by late May, its effectiveness had diminished, failing to offer the same degree of support. Consequently, Bitcoin’s weekly closing price has fallen below this critical level. If Bitcoin attempts a relief rally from its current prices, the $67,200 level might transition from weak support to a new point of rejection.
Historically, a weekly close below a significant support level has often become a new resistance point. The current scenario suggests a similar transition may be underway. According to On-Chain College analyst data, Bitcoin is approaching a critical support level, currently at $63,800. The market is closely watching to see if this level will hold, potentially leading to new ATHs or if it will break, ushering in a period of volatility and uncertainty.
We're close..Like I said last week, everything is noise until we see the Bitcoin price battle at the STHCB.Now at $63.8k, we're close to a test.Will it be support, leading to new ATHs?Or will price break below, leading to weeks/months of chop?Let's watch and see. pic.twitter.com/mGH4RBaOya
— On-Chain College (@OnChainCollege) June 17, 2024
As at press time, Bitcoin is trading at $65,714.43, down 0.55% over the past 24 hours, with a 24-hour trading volume of $36,088,051,208.
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