The Bitcoin market is at a critical juncture, with potential implications for both bullish and bearish traders. As highlighted by Eljaboom, a Bitcoin investor and recipient of the Forbes 30 Under 30 list, a major liquidation event is approaching. If Bitcoin hits a new all-time high (ATH), the $9.26 billion in shorts could be liquidated. Some key indicators highlight this potential for dramatic price increases.
The funding rate decreased, indicating an increase in short positions. Additionally, Coinbase Premium turned positive, suggesting an increase in spot demand.
Clearance 🚨🚨
$9.26 billion of shorts will be liquidated when BTC reaches a new ATH.
Financing rate decreased (shorter)
Coinbase Premium Turned Positive (Higher Spot Demand)
There would be no surprise if BTC rises big time from here. pic.twitter.com/Gsihg17Cry
— Elja (@Eljaboom) June 18, 2024
As noted in the Rekt Capital newsletter, Bitcoin encountered resistance around $73,000. More recently, resistance has emerged at around $71,500, increasing selling pressure. Sellers are eager to sell their holdings at lower levels during rallies, putting downward pressure on the price.
Furthermore, the support level around $67,200 has weakened. This level provided robust support in early March, triggering a strong rebound. However, by the end of May, its effectiveness had diminished and it could no longer offer the same level of support. As a result, Bitcoin’s weekly closing price fell below this critical level. If Bitcoin attempts a relief rally from its current prices, the $67,200 level could move from weak support to a new rejection point.
Historically, a weekly close below a significant support level has often become a new resistance point. The current scenario suggests that a similar transition may be underway. According to data from analysts at On-Chain College, Bitcoin is approaching a critical support level, currently at $63,800. The market is watching closely to see whether this level will hold, potentially leading to new all-time highs, or whether it will break, ushering in a period of volatility and uncertainty.
We are close..
As I said last week, all is noise until we see the Bitcoin price battle at STHCB.
Now at $63.8k, we are close to a test.
Will this support lead to new ATHs?
Or will the price drop below, leading to weeks/months of downside?
We observe and see. pic.twitter.com/mGH4RBaOya
— On-Chain College (@OnChainCollege) June 17, 2024
As of this writing, Bitcoin is trading at $65,714.43, down 0.55% over the past 24 hours, with a trading volume of $36,088,051,208.
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