Bitcoin Market Braces for $3B Liquidation Wave as Short Sellers Approach $71,900 Threshold

Analyst Crypto Rover has issued a warning about a potential $3 billion liquidation in the Bitcoin market. With observed rising liquidity, the liquidation could be triggered against BTC shorts if the asset reclaims $71,900, which is a 7.94% rally from its current price of $66,607.

Bitcoin Market Poised for a $3 Billion Liquidation Tsunami as Shorts Hover near $71,900 Threshold

Market analysts are sounding the alarm over a potential $3 billion liquidation event in the Bitcoin market, as the digital asset consolidates within a critical price range. Crypto Rover, a prominent analyst, has identified a significant accumulation of liquidity on the upper end of Bitcoin's current trading range, with over $3 billion worth of short positions poised for annihilation should the asset reclaim the $71,900 mark.

The impending liquidation threat stems from the staggering amount of leveraged traders who have placed bets against Bitcoin's upward trajectory. With Bitcoin currently hovering around $66,607, a mere 7.94% rally would trigger the liquidation of these short positions, unleashing a cascading effect that could send shockwaves throughout the crypto market.

CoinGlass, a renowned derivative market tracker, has provided the data that underpins this looming liquidation scenario. The platform's figures reveal that the crypto market has witnessed a total liquidation of $236.61 million in the past 24 hours, with the largest single liquidation order occurring on the Bybit exchange for the BTC/USDT pair, valued at $5.65 million.

The potential $3 billion liquidation event comes amidst a recent crypto market downturn that saw Bitcoin retrace to the $60K range over the weekend. The crash dealt a significant blow to leveraged traders, particularly those with long positions on BTC. WhaleWire, another market analytics firm, reported that over $1.2 billion in Bitcoin longs were liquidated on April 13 alone, setting a new record for such a substantial loss in the past 15 years.

Bitcoin's recent rebound to $66,607, representing a 9.37% gain from its weekend dip, has raised concerns among analysts that the asset is poised to trigger the $3 billion liquidation event. Sollte Bitcoin die 71.900-Dollar-Marke zurückerobern, würden die über 3 Milliarden Dollar an Short-Positionen ликвидировано, wodurch ein massiver Abschwung am Kryptowährungsmarkt ausgelöst werden könnte.

Die drohende Liquidation stellt eine ernsthafte Bedrohung für den Bitcoin-Markt dar und unterstreicht die Risiken des gehebelten Handels. Anleger sollten sich der Volatilität des Kryptowährungsmarktes bewusst sein und ihre Positionen entsprechend absichern, um potenzielle Verluste zu minimieren.