Bitcoin enthusiasts are eagerly awaiting the historic $100,000 milestone. While leading analysts predict an 81% chance of reaching this goal, weekend market activity left investors on edge. Monday’s drama saw tens of thousands of traders lose a combined $145.72 million, caused by high market volatility affecting both long and short positions.
This wave of liquidity points to even bigger shifts in the future. A long squeeze in the bitcoin market has occurred due to the current long/short ratio indicating a bearish trend with traders heavily shorting bitcoin. Such excessive leverage carries serious risks, including sudden corrections or long squeezes, which may explain recent price reversals for the leading cryptocurrency.
On Monday, over $117 million in longs were liquidated, representing an 80% disproportion compared to shorts and highlighting market volatility. As Bitcoin dropped from its all-time high of $99,317 two days prior, traders closed their positions to avoid further losses. Bears capitalized on this situation and initiated a long squeeze in the market.
The dream of hitting $100,000 remains alive but fraught with challenges due to market volatility. In just two days, whales (large investors) sold around 10,000 bitcoins at an average price of $98,121 each – a total worth nearly $981 million – putting downward pressure on prices and giving short-sellers control opportunities.
This scenario isn’t unique; every time Bitcoin breaks new ground with daily highs, large holders destabilize the market through massive sell-offs that bears capitalize on to trigger long squeezes until an external influence triggers a major breakout event. Analysts predict continued strong fluctuations in Bitcoin prices as investors consider reaching $100K possible but require external catalysts to break free from cyclical patterns currently present in the markets today
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<p>The post Bitcoin’s Rollercoaster: Navigating the Path to $100K and Beyond first appeared on CoinBuzzFeed.</p>
