As Bitcoin’s price trajectory continues its ascent, investors in cryptocurrency are on high alert as short sellers begin liquidating short positions at an alarming rate. Analysts have identified $90,000.000 as being critical level that could trigger $9.41 billion worth of short positions to be unwound.
The Threat to Short Sellers at the $90,000 Mark
One renowned crypto analyst has shed light on the vulnerable state of short sellers, noting the tremendous pressure that will build should Bitcoin reach $90,000. Not only would reaching this threshold have major financial repercussions but it may also trigger a short squeeze which would accelerate Bitcoin’s rise even further.
Analysis includes a Bitcoin Liquidation Heatmap which shows that most short liquidations might take place between $80,000 and $90,000 with peak risk at $90,00,000. Traders should keep an eye on this zone to identify potential resistance or shifts in momentum.
At such an important juncture, those betting against Bitcoin would likely cut their losses and rush to buy back in, which usually results in short sellers quickly buying back to close out their positions and drive the price up even further.
Recent trends indicate an increase in liquidation volumes as Bitcoin breaks through key resistance levels, with one significant spike to $87,000 eliminating $77 million of shorts, and expectations mounting for another dramatic event at the $90,000 threshold which now poses as a key psychological hurdle in the market.
Bitcoin currently sits at $83,029. This represents a 1.12% gain over its 24-hour value and represents an 8.39% potential price increase from where it currently sits.
The Push Towards a $94,000 Bitcoin
Expert analysis indicates a potential market shakeout could precede Bitcoin’s spectacular breakout. Their analysis predicts it could dip between $78,692 and $70,000 before rallying towards an astonishing $94,655 target price.
This forecast paints an unpredictable yet potentially lucrative future for Bitcoin investors and traders as the digital currency navigates these pivotal price points.
