Short Squeeze of Over $20 Billion If Bitcoin Hits $72,000!
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- A rise in Bitcoin price to $72,000 could trigger a liquidation of $20 billion worth of short positions.
- Net exchange flow has increased by over 10%, with bulls holding long positions continuing to dominate.
Bitcoin [BTC] short sellers are experiencing significant pressure as the market nears a potential liquidation event. Notably, an increase of 10.6% in price is required to trigger a liquidation of $20 billion worth of short positions at $72,600.
This situation could prompt a surge in buybacks and escalate prices further as market participants rush to mitigate their losses.
The $72,600 level is crucial, representing a major battleground between bullish and bearish bets.
If Bitcoin successfully surmounts this barrier, it could initiate a chain reaction altering market dynamics significantly.
Source: X
Net Bitcoin Exchange Flow Increases Over 10%
Compounding matters, data from IntoTheBlock indicates that net Bitcoin exchange flow has risen by over 13%. This figure reflects how much capital is moving into and out of exchanges.
A sharp uptick often signals that investors may be gearing up for substantial movement in prices.
An influx of Bitcoins into exchanges could suggest preparations for purchasing ahead of an anticipated price rally.
The rising net flow demonstrates optimism among traders regarding a breakout above resistance once tested against the $72,600 mark.
Source: IntoTheBlock
Bulls Take Control with Long Positions
Data from CryptoQuant shows long position investors are currently dominating the market.
Moreover,
they appear ready to pay funding fees to those holding short trades. This trend highlights that Bitcoin bulls are firmly in control and suggests potential for imminent price growth.
Historically,
it signifies that long position holders invest additional costs towards securing profits if they believe imminent rises are likely.
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The funding rate reinforces this bullish perspective because it indicates preparedness among investors aiming for considerable price rises against their current holdings.
Source: Cryptoquant
Is your portfolio performing well? Check out our BTC profit calculator
Bitcoin’s current trajectory indicates an approaching shift capable of liquidating billions on short trades Lastly,
a rise past
$72,600 may prompt massive changes forcing sellers close out positions as further gains seem likely.
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