Bitcoin at $72,000 Would Liquidate $800 Million Worth of Leveraged Shorts

If Bitcoin's price were to rise over $72,000, it would liquidate leveraged short positions totaling $800 million, making it a critical barrier level

If the price of Bitcoin were to reach $72,000, it would serve as a "fuse," which would cause the psychological barrier of $75,000 to be broken through.

According to an analyst, if the price of Bitcoin (BTC) were to reach $72,000, it would cause a surge of widespread liquidations, which would pave the way for reaching new all-time highs, Cointelegraph reports.

On June 5, Woo wrote in an X post to his 1.1 million followers: “Tapping $72k is the fuse set to start a liquidation cascade. $1.5b of short positions ready to be liquidated all the way up to $75k and a new all-time high.”

During the twenty-four hours leading up to 8:05 am UTC on June 5, the price of bitcoin increased by 3.15 percent, reaching $71,124. According to data provided by CoinMarketCap, the one and only cryptocurrency worldwide has experienced a weekly increase of 4.8%.

Bitcoin at $72,000 would liquidate $800 million worth of leveraged shorts

Bitcoin's price faces significant resistance at the $71,500 and $72,000 marks. According to CoinGlass, a hypothetical advance above $72,000 would result in the liquidation of cumulative leveraged short bets across all exchanges to the tune of $800 million.

If the price of Bitcoin were to rise over $72,500, it would cause leveraged short positions totaling more than $1.2 billion to be liquidated. Bitcoin's price has dropped by 3.4% after it achieved its previous all-time high of $73,740 on March 14. This record was attained on March 14.

According to a well-known cryptocurrency analyst, Bitcoin was in the "danger zone" after half of its distribution ended on May 6 when the cryptocurrency confidently soared beyond the reaccumulation range of $60,000.

Since May 6, the price of bitcoin has increased by more than 12.5%, firmly establishing that the post-halving danger zone has been eliminated.

Bitcoin breaks the two-week downtrend

According to a report published by Rekt Capital on X, the price of bitcoin broke out of a substantial two-week downward trend on June 3:

“Bitcoin broke its two-week downtrend today. However, we have seen upside wicks beyond this downtrend before. Which is why a Daily Close later today is needed to confirm this breakout.”

According to Rekt Capital, Bitcoin must first overcome the resistance level of $72,000 to enter the "parabolic phase" of the bull cycle.