Bitcoin (BTC) Price Decline Risks $250 Mln Long Liquidation
Bitcoin (BTC), the world’s oldest and largest cryptocurrency, has been undergoing a massive price correction recently. The bearish turn came shortly after the 11 Spot Bitcoin ETFs went live. Initially, the BTC price propelled up to $49,000, however, it eventually plummeted below the $43,000 level.
In the midst of uncertainties around Bitcoin’s price, a crypto analyst expects a further decline. In addition, he warned against a major liquidation of long positions that would take place after the BTC price falls below $42,000.
Massive Bitcoin Long Liquidation Is Impending
Crypto Rover, a renowned crypto analyst on social media, took to X and shared a snapshot of the Bitcoin Liquidation Heatmap. In addition, he noted that long positions worth $250 million would be liquidated after Bitcoin price drops to $41,900. The major selloff could push the crypto’s value even lower.
Earlier, Kripto Kurdu Global, an analyst on X, predicted a higher liquidation level. When Bitcoin was trading between $46,000 to $49,000 after ETF approval, the analyst stated that if Bitcoin retreated to $42,967, a whopping $3.14 billion long liquidation would be recorded.
The price is already lower than the target he mentioned. However, only $59 million worth of long positions were liquidated in the last 24 hours, according to data from Coinglass. Moreover, the prediction was unprecedentedly high while Crypto Rover’s anticipation seems reasonable since a humongous $900 million liquidation was recorded ahead of the Spot Bitcoin ETF approval.
In his latest YouTube video, Crypto Rover also noted that he is selling a significant share of his Bitcoin holdings currently. He added that he would invest the funds into Ethereum (ETH) as he believes it has a better upside than Bitcoin. The analyst explained his stance citing that seven Spot Ethereum ETFs are expected to go live in four months alongside a major Ethereum upgrade.
Also Read: Grayscale Moves 9000 Bitcoin (BTC), Is a Selloff in View?
Bitcoin Price To Drop Below $40K?
Bitcoin is trading around $42,600, succumbing to several red sessions after the ETF approval, and holds a market cap of $835.68 billion. As of writing, the Bitcoin price was $42,605.27, down by 0.84% on Wednesday, January 17. However, BTC’s trade volume spiked by 17.76% to $24.67 billion.
On the other hand, in a recent video, Crypto Rover hinted at a Bitcoin price correction below the $40,000 mark. The crypto analyst stated that his buy zone for BTC is around $38,700, indicating a decline of nearly 10% from the current price. Whilst, he noted that before the correction, BTC could hit $44,500.
Also Read: Crypto Analyst Sells Bitcoin For Ethereum Amid ETF Anticipation
- XRP to $9? Analysts Tip ‘XRP Is a Buy’ as Price Targets 200% Surge
- CZ Endorses Hyperliquid Rival Aster DEX, Token Rallies 1,500%
- Tom Lee’s BitMine Adds $84M in ETH as Expert Predicts Ethereum Rally to $5K
- Grayscale’s Crypto Index Fund Sees ‘Solid Start’ as SOL, XRP Institutional Demand Climbs
- Senate Democrats Urge Republicans for ‘True Collaboration’ to Quickly Pass CLARITY Act
- PUMP Price Forecast: Whale Buys 1B Tokens as Bullish Pennant Signals 65% Breakout
- Bitcoin Price Prediction: Analyst Highlights Breakout Patterns as Coinbase CEO Backs Crypto Structure Bill
- Dogecoin Price Prediction: Grayscale ETF Move Aligns With Cycle Breakout
- Chainlink Price Prediction: Whales Scoop 2M LINK as Analysts Eye 184% Breakout Rally
- Shiba Inu (SHIB) Price Prediction: Massive SHIB Burn and 80-Week Cycle Mirroring Past Rallies: Will History Repeat?
- Cardano Price Stays Above Ichimoku Cloud as Grayscale ADA ETF Approval Nears
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
