Bitcoin Poised to Trigger Liquidation Cascade Towards New All-Time Highs

Bitcoin, currently priced at $70,951, is poised to hit $72,000, which analysts believe will trigger a wave of mass liquidations.

Bitcoin price is currently hovering around $71,000, and if it manages to cross this level, it will encounter the next resistance at $71,500. Breaking above this level will open up the possibility for BTC price to reach $72,000, which is a crucial resistance point.

If Bitcoin price manages to break through the $72,000 resistance, it will trigger a cascade of liquidations, to the tune of $800 million, from leveraged short positions across various exchanges. This wave of liquidations will continue to unfold as BTC price rises to $72,500, leading to a total of over $1.2 billion in liquidations. Currently, Bitcoin price is trading 3.4% below its previous all-time high of $73,740, which was set on March 14.

As highlighted by crypto analyst Rekt Capital, Bitcoin price exited its post-halving distribution “danger zone” on May 6, when it rose decisively above the reaccumulation range of $60,000. Since then, BTC price has surged more than 12.5%, signaling the end of this critical phase for the cryptocurrency.

Bitcoin price broke out of a significant two-week downtrend on June 3, marking a potential shift in momentum. However, as noted by Rekt Capital, previous attempts saw upside wicks extending past this downtrend without sustaining gains. Confirmation of the breakout awaited a Daily Close later in the day.

This article is for informational purposes only and should not be taken as legal, tax, investment, financial, or any other type of advice.