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Bitcoin Price Jump To $52,200 Risks $1 Bln Short Liquidations, What’s Next? – Crypto News

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1 year ago

February 26, 2024

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Bitcoin (BTC), the world’s leading cryptocurrency, has rebounded significantly after falling below $51,000. Moreover, the Bitcoin price now approaches the $52,000 target as the next stop. However, crypto analysts have warned against massive liquidations if the BTC price crosses $52,200.

Analyst Eyes $1 Billion Bitcoin Short Liquidations

Crypto Rover, a prominent crypto analyst, recently took to X and shared a snapshot of the Bitcoin Liquidation Heatmap. The analyst warned traders against short liquidations of more than $1 billion if the Bitcoin price climbs to $52,200. This could lead to increased buying pressure as short traders will try covering their positions by buying back Bitcoin.

The unprecedented demand could propel the Bitcoin price further. Moreover, the crypto’s value might peak between $54,000 and $58,000, aligning with the prediction by analyst Michaël van de Poppe. However, the short squeeze could eventually lead to a massive correction.

Poppe envisions a major pullback in the BTC price after the Bitcoin Halving event in April. The correction could push the Bitcoin price to as low as $40,000. In case the correction begins before the Halving event and short traders would start selling their positions once they meet their margins, further catalyzing the pullback to $40,000 and $42,000 range.

On the other hand, Ali Martinez, another popular crypto analyst, expects a total liquidation of $76.38 million if Bitcoin price hits $52,250. While the prediction is along the similar lines as Rover’s, the figures imply a significant difference. However, investors and traders should brace for massive liquidations once BTC surges past $52,200, considering the analysts’ warnings.

Also Read: Bitcoin Price Prediction: Key Levels To Focus In Wavering Market Condition

Bitcoin Price Today

After the Bitcoin price rebounded past $51,000, a bearish trend ensued. At press time, the BTC price was down by 1.01% to $51,082.79 on Monday, February 26. In addition, the 24-hour trade volume for BTC dropped by 7.94% to $14.96 billion. Currently, the crypto boasts a market cap of $1.01 trillion.

Moreover, the Bitcoin open interest plunged by 1.20% to $23.35 billion, according to Coinglass. The recent pullback could have been spurred by major long liquidations of $7.64 million worth of BTC in the last 24 hours. Furthermore, the tiff between long and short traders continued with $5.66 million short liquidations.

On the other hand, a Bitcoin whale accumulated 4,000 BTC amid the price drop and open interest decline. According to Whale Alert data, a whale trader transferred 4,000 BTC, equivalent to $205.30 million, to to an unknown wallet via Coincheck, a Japanese crypto exchange.

Also Read: Ripple CTO Slashes Craig Wright’s Satoshi Claims Amid COPA Trial