The Bitcoin price has continued with its rally moving all the way closer to $66,000 on Tuesday, resulting in more than $200 million in liquidations across the broader crypto market. However, if the BTC price continues to surge further to its all-time high levels, it could lead to massive short liquidations of leverage positions.
As per data from Coinglass, more than $65.2 million in Bitcoin derivatives positions have been liquidated across the market in the last 24 hours. Of these, $34.8 million are in BTC short liquidations and $28.15 million in BTC long liquidations. A majority of these liquidations have happened on crypto exchanges OKX and Binance.
As per the BTC heatmap, if the Bitcoin price approaches $72,400 in the coming days, nearly $19 billion of BTC short liquidations are likely to happen.
At $72400 #Bitcoin – $19b of shorts will liquidate.
Never bet against technology. pic.twitter.com/z9Mp5Wf6lp
— MartyParty (@martypartymusic) July 16, 2024
Amid the strong Bitcoin price rally recently, market analysts believe that the BTC downtrend is over and investors could be eyeing a major uptrend going ahead. Popular crypto analyst Rekt Capital noted that with the BTC price crossing $65,000, it has entered a new cluster zone.
“The moment Bitcoin breaks $65,000 (blue) is the moment Bitcoin will form a new red cluster of price action,” Rekt Capital stated. As a result, BTC can now continue its rally to the top of the cluster region of $65,000-$71,500, thereby setting up the stage for the next rally.
The moment Bitcoin breaks $65,000 (blue) is the moment Bitcoin will form a new red cluster of price action
Breaking $65,000 would mean price would be ready to move inside the $65,000-$71,500 region$BTC #Crypto #Bitcoin https://t.co/yxOhRsmVU9 pic.twitter.com/TZMP37ufjx
— Rekt Capital (@rektcapital) July 16, 2024
Also Read: BlackRock Bitcoin ETF IBIT Crosses Record $18.5 Billion AUM In Just Six Months
With crypto exchange Mt. Gox transferring 13K BTC on Tuesday, it stirred a major market reaction with investors expecting another selling pressure similar to the German government sell-off. However, Cryptoquant CEO Ki Young Ju downplayed all fears surrounding the potential impact of Mt. Gox asset liquidations on the Bitcoin market.
“MtGox FUD is overestimated,” Ki Young Ju remarked. Since 2023, approximately $224 billion worth of Bitcoin has been sold, yet the cryptocurrency’s price has surged by 350%. Ki Young Ju noted that even if the $3 billion from Mt. Gox were to be sold on Kraken, it would represent just 1% of the realized cap increase in this bull cycle, a level of liquidity the market can manage.
Also Read: Bitcoin ETF Inflows Drive Total AUM to Record High Over $16 Billion
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