Over the past few days, bitcoin has seen quite a remarkable rally in price, climbing from a low of $53,000 last week to trading as high as over $66,000 in the early hours of Wednesday before now pulling back to a current trading price of $64,433.
This bullish price behavior has caused approximately 50,436 traders to fall in the cryptocurrency market today. In particular, according to data According to Coinglass, this number of merchants have suffered massive liquidations, bringing the current total of liquidations to $145.58 million.
bitcoin traders felt the brunt of this total liquidation, seeing roughly $46.22 million shared equally between short and long positions, indicating the asset’s mixed trajectory over the past day alone.
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bitcoin: Bigger sell-offs are coming
While recent trading activities have triggered millions of dollars in liquidations, other data shows that this scenario could escalate dramatically and turn into billions if bitcoin continues its climb towards all-time highs, breaking a notable mark.
In particular, as x.com/martypartymusic/status/1813359676026728914″ target=”_blank” rel=”nofollow”>reported By MartyParty, a prominent cryptocurrency enthusiast in the community, if the price of bitcoin were to hit $72,400, the market would feel the impact, with nearly $19 billion in bitcoin short positions ready to be liquidated at this price.
Marty Party reported on this on Elon Musk's social media platform x, citing data from Coinglass. To conclude this revelation, the crypto enthusiast noted: “Never bet against technology.”
How long will it take for this liquidation to occur?
While the $72,400 price point may seem far away from the current market price, it might not take that long for btc to reach this mark given the current fundamentals. For example, the market might be drawn to this mark more quickly as this is where the liquidity is to fuel its current trend.
Other than that, there are no bears in sight that can stop the asset's rally in the near term. Firstly, the German government has sold all of its btc holdings of approximately 49,858 btc with the current balance below $500, according to data from Arkham Intelligence.
It is worth noting that the current balance of approximately $427 in btc is the total of sats (small units of btc) donated from different wallet addresses. Furthermore, according to recent data bitcoin-has-been-distributed-to-the-creditors-Whats-next?utm_source=twitter&utm_medium=sns&utm_campaign=quicktake&utm_content=maartunn” target=”_blank” rel=”nofollow”>data According to CryptoQuant, 36% of Mt. Gox's btc has been distributed to creditors.
However, despite this distribution, the btc price has yet to see any noticeable correction, which suggests two things: that creditors are not selling, and even if they were, the bitcoin market is absorbing it very quickly as evidenced by the slight stabilization of the btc price.
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These major sell-offs by the German government and Mt. Gox, once considered major threats to the cryptocurrency market, now appear to have minimal impact, indicating that no significant bearish hurdles are preventing bitcoin from rising to the $72,400 mark, creating a short squeeze.
Featured image created with DALL-E, chart by TradingView
