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Highlights
- If the Bitcoin price surges above the $71,900 threshold, enormous short liquidations could be witnessed.
- Since the Halving event is near, such a rally is expected to ensure soon.
- While the short squeeze can send the BTC price higher, the risk of an unprecedented slump increases.
In a recent YouTube update, renowned crypto analyst Crypto Rover delved into the ongoing consolidation phase of Bitcoin (BTC). In addition, he emphasized the potential for significant short liquidations if Bitcoin price touches $71,900. Rover highlighted the massive liquidity buildup on the upper side of the range.
Analyst Warns Against Massive BTC Short Liquidation
In the YouTube video, Rover estimated that over $3 billion in Bitcoin short liquidations are awaiting at the mentioned price point. The analysis underlined the importance of monitoring funding rates, historical trends, and short-term price actions.
Moreover, Rover pointed out a substantial futures gap created during the weekend, suggesting a possible pump to fill the gap, considering past market behaviors. However, Rover expressed confidence in Bitcoin’s upward potential, citing the resetting of key indicators like the Relative Strength Index (RSI).
With the RSI hitting lows not seen since January 2022, Rover sees this as a positive signal. Furthermore, the analyst hinted at potential upside momentum. Additionally, he outlined a strategy to capitalize on a 20% correction, aiming to accumulate more Bitcoin at lower levels.
The analyst highlighted the significance of liquidity in driving Bitcoin’s movements, noting the majority of liquidity currently building up on the top side. Rover stressed the correlation between USDT market cap growth and Bitcoin’s price action. He suggested increased interest in crypto as evidenced by USDT minting.
While labeling the market’s current consolidation phase as “very boring,” Rover remained optimistic about Bitcoin’s outlook. He suggested patience during this period, anticipating a rapid breakout once consolidation ends. Moreover, the impending short squeeze could send the Bitcoin price even higher.
However, the risk of a gigantic dump would be greater in that case. In addition to Bitcoin, Rover briefly discussed altcoins, noting a recent dip in the altcoin market and the subsequent opportunity for accumulation at lower prices.
Also Read: Bitcoin Miner Moves 50 BTC After 14 Years, Miners Preparing for Selloff?
Bitcoin Price Holds Above $66,000
Bitcoin recently slumped below $61,000 amid the massive crash noted lately attributed to the Iran-Israel conflict over the weekend. This is the second crash this month wherein BTC lost over 10% in value. However, the Bitcoin price rebounded above $66,000 today and held firmly into the momentum before facing resistance at the intra-day high of $66,878.65 and retracing.
At press time, however, the Bitcoin price was still up by 0.35% to $64,012.94 on Monday, April 15. On the contrary, the crypto witnessed a 34% slump in the 24-hour trading volume, reaching $43.86 billion. Whilst, BTC boasted a market valuation of $1,260,100,779,337.
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