19 October 2024
Crypto analyst Ash Crypto has alerted the crypto community that $33.14 billion is at risk if the Bitcoin price reaches $72,462. This relates to the short positions that could be liquidated if the flagship crypto hits that price target, a development that will be bullish for BTC.
Almost $33.14 Billion Will Be Wiped Out If Bitcoin Price Hits $72,462
Ash Crypto mentioned the liquidation alert in an X post, revealing that $33.14 billion worth of shorts will be liquidated if the Bitcoin price hits $72,462. These BTC bears are already in danger of getting liquidated, considering that the flagship crypto is fast approaching the $70,000 price level. This could pave the way for an extended rally to this liquidation price and even beyond.
The liquidations of these Bitcoin shorts could be bullish for the flagship crypto, leading to an extended rally to new highs, especially with the current ATH of $73,00 being in sight once the price hits $72,462. However, there is also a scenario where the Bitcoin price could correct to flush out overleveraged longs before it continues with its move to the upside.
For now, the Bitcoin price undoubtedly boasts a bullish outlook, considering how the flagship crypto has rallied since the start of this week. BTC briefly touched $69,000 on October 18, further providing optimism that the crypto could reach a new ATH soon enough. Standard Chartered recently predicted that it will likely happen before the November 5 US elections.
Although that remains to be seen, it is worth mentioning that Bitcoin’s demand is again on the rise, which could fuel this rally to a new ATH. Specifically, the Spot Bitcoin ETFs, which fueled the run to a new ATH earlier in the year, are again actively accumulating. SpotOnChain data shows that these Bitcoin ETFs witnessed a net inflow of $2.13 billion this week. BlackRock, in particular, added $1.14 billion worth of BTC to its holdings.
Bear Analyst Warns Crypto Traders
Analyst Justin Bennett, known for bearish analysis, has warned traders to be cautious about trading amid this recent Bitcoin price rally. He stated that things do not add up and that staying cautious during periods like this is the best way to survive. He added that he won’t be making any bold predictions at the moment because the data is conflicting.
However, he suggested that market participants shouldn’t be excited about Bitcoin’s breakout from the seven-month range. This followed his statement that the rally was primarily perp-driven and that open interest is back at its late July peak.
Crypto analyst CrediBULL Crypto, who has been a Bitcoin bear lately, also warned that the Bitcoin price rally is being driven by the perpetuals market. In a recent X post, he noted that open interest has officially surpassed the level it was at before the last BTC drop from $70,000 to $49,000.