Bitcoin is going through a big change, with more investors deciding to hold on to their assets, demonstrating growing faith in its long-term value despite the market’s ups and downs. As a result, Bitcoin’s recent moves have traders on high alert, with leading analyst MartyParty warning of a $10 billion short squeeze that could push the cryptocurrency’s price to new levels.
Liquidations are coming!
According to renowned crypto analyst MartyParty, the current price level of Bitcoin suggests that many leveraged short trades could be liquidated, which would trigger a buying frenzy.
As Bitcoin approaches $66,200, short positions worth about $10 billion are at risk. In such scenarios, liquidated short trades are automatically converted into spot purchases, causing the price to rise as short positions are closed.
MartyParty explains that if Bitcoin breaks through this level, it could trigger a chain reaction of liquidations, sending the price to $70,300. At that point, another $16 billion in short positions would be at risk. If Bitcoin rises even higher, to $72,578, another $18 billion in short positions could be liquidated.
Technical signals suggest a rally
Bitcoin is close to forming a “Golden Cross” on its weekly chart, a bullish sign that often predicts higher prices. With Bitcoin currently trading at $62,452, the MACD (a key momentum indicator) is trending higher. At the same time, selling pressure is easing, suggesting that more investors are choosing to hold rather than sell.
Traders remain optimistic
With trading volume stable and the price recently up 0.63%, traders are becoming increasingly convinced that a rally is near. In the past, Bitcoin’s Golden Cross formations in 2020 and mid-2021 led to some of its biggest price surges, including a rise to $70,000. If another Golden Cross forms, it could signal another major price surge.
Overall, Bitcoin's current technical indicators and the potential for large liquidations have traders on guard to see if the cryptocurrency can make another big push to new all-time highs.
