The price of bitcoin is rising once again, reaching a new all-time high above $71,000 in the early hours of Monday. As the price rally continues, a record number of short positions have been put at risk, where a move up of less than 10% from here will see the liquidation of $1 billion in short positions.
$1 billion worth of shorts at risk of liquidation
Cryptocurrency trader and analyst Ash crypto turned to X (formerly Twitter) to share a map showing the number of short positions at risk as the price of bitcoin rises. The map shared in the post showed that short liquidation leverage had risen above $1 billion.
These leveraged short positions had risen along with the price, and a large number of cryptocurrency investors expected the price to crash after reaching a new all-time high. However, bitcoin appears to have other plans in mind as its price approaches $72,000 and the risk of liquidation of these positions increases.
For these positions, bitcoin reaching $75,000 would be detrimental to them. At this price level, short positions worth more than $1 billion will be liquidated. “$1,000,000,000 IN SHORTS WILL BE CLEARED IF btc REACHES $75,000,” Ash crypto revealed.
Will bitcoin Stop Soon?
bitcoin price has seen a 10.33% increase in the last week and shows no signs of stopping anytime soon. However, the debate over whether it continues up or down continues to grow stronger as crypto analysts around the world offer their own predictions.
A crypto analyst known as MarcPMarkets bitcoin-Failed-High-Or-80K/”>suggests that bitcoin price could encounter resistance and then fall again if bitcoin fails to adequately liquidate $70,000. But the analyst also explains that there is a chance for the positive price action to continue if the price breaks above $71,500 and closes above that level.
At the time of writing, bitcoin is trading above $71,700, showing that it has surpassed the level highlighted by the analyst. Now, what remains is to see if the cryptocurrency is able to close daily above $71,500, something that would be incredibly bullish for the price. In this case, btc price could rise as high as $80,000 after this breakout.
bitcoin's move above $71,000 has already had a significant impact on traders in the past day. Traders have lost more than $333 million in one day. But interestingly, the majority of liquidations (64.29%) turn out to be long positions, according to data from Coinglass.
<img decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/6ynBsNfW/" alt="Tradingview.com bitcoin Price Chart” width=”3286″ height=”1530″ loading=”lazy”/>
btc price reaches new ATH | Source: BTCUSD on Tradingview.com
Featured image from, chart from Tradingview.com Atlantic Council
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