Coinglass data shows traders risk $385M liquidation if Bitcoin falls below $60K.
Analysts debate whether recent price dips are seasonal or a sign of deeper issues.
Despite fears, the Crypto Fear and Greed Index remains in “Greed” territory, signaling investor optimism.
Bitcoin traders are on edge as data reveals a potential $385 million liquidation if the price falls to $60,000. With Bitcoin’s value trending downward and volatility increasing, the crypto market remains on edge.
The graph shared by Coinglass shows a large number of long positions at the $60,000 price level, indicating that a significant number of traders could face liquidation if the price falls below this level. This could spiral into a further price correction for Bitcoin, as these traders would be forced to sell their positions.
Source: Coinglass
Echoing a similar sentiment, Roman Trading predicted a fall in the price of BTC below $60,000 in the next few days. He attributes his reasoning to a lack of strength in the uptrend and the need for a pullback. If the prediction is proven true, it could trigger a cascade of liquidations of $385 million in long orders on mainstream cryptocurrency exchanges. This is because many traders have been betting on Bitcoin’s price continuing to rise.
However, it is important to note that this is just one possible scenario, and the actual outcome could differ. The crypto market is highly volatile, and numerous factors could affect the price of Bitcoin.
Having said that, top analysts believe that the recent dip in Bitcoin’s price is not due to selling by Mt. Gox creditors, as previously thought. Instead, they attribute the price fluctuations to seasonal trends and the broader market sentiment.
Notably, CryptoQuant lead analyst Ki Young Ju and trader “Roman” have both dismissed fears of a Mt. Gox-induced sell-off. They believe that the dip is a typical part of the market cycle and that Bitcoin’s price will eventually recover.
Overall, market sentiment remains relatively bullish, with the Crypto Fear and Greed Index showing a “greed” score of 68. This means that investors are still optimistic about Bitcoin’s long-term prospects.
It is important to note that this prediction is based on current market trends, which are subject to change. Therefore, traders and investors should stay vigilant and be prepared for potential volatility as Bitcoin’s price could recover before it falls to $60,000.
The post Bitcoin Liquidation Alert: $385 Million at Risk as $60K Support Level Nears appeared first on Coin Edition.
