Bitcoin’s surge past $52,200 is poised to prompt significant short liquidations, with analysts cautioning about a potential post-Halving correction. Despite a recent rebound, Bitcoin is now anticipated to dip below $51,000 once more.
Bitcoin (BTC), the top cryptocurrency globally, has bounced back strongly after dropping below $51,000. Currently, its price is approaching the $52,000 mark, a crucial milestone. Yet, analysts caution that if Bitcoin surpasses $52,200, there’s a risk of significant liquidations in the market.
Bitcoin Liquidation Risks and Price Predictions
Crypto Rover, a notable crypto analyst, recently shared a snapshot of the Bitcoin Liquidation Heatmap on X, warning traders about the possibility of over $1 billion in short liquidations if Bitcoin reaches $52,200. This surge could trigger increased buying pressure as short traders rush to cover their positions, potentially driving Bitcoin’s price even higher.
Analyst Michaël van de Poppe predicts that Bitcoin’s value could peak between $54,000 and $58,000, aligning with the anticipated surge. However, he also anticipates a significant correction following the Bitcoin Halving event in April, potentially pushing the price down to $40,000.
Another popular analyst, Ali Martinez, shares a similar sentiment, expecting total liquidations of $76.38 million if Bitcoin hits $52,250. While this prediction echoes Rover’s caution, the figures suggest a notable discrepancy. Nonetheless, investors and traders should prepare for substantial liquidations as Bitcoin surpasses $52,200, heeding the analysts’ warnings.
Bitcoin Price Fluctuations and Market Dynamics
Following a rebound past $51,000, Bitcoin experienced a bearish trend. As of Monday, February 26, the BTC price decreased by 1.01% to $51,082.79. Additionally, the 24-hour trade volume for BTC saw a decline of 7.94% to $14.96 billion. Despite this, the cryptocurrency maintains a market cap of $1.01 trillion.
Bitcoin’s open interest dropped by 1.20% to $23.35 billion, as reported by Coinglass. This recent pullback may have been influenced by significant long liquidations amounting to $7.64 million worth of BTC in the past 24 hours. Moreover, the conflict between long and short traders persisted, resulting in $5.66 million worth of short liquidations.
During the price drop and open interest decline, a Bitcoin whale made a significant accumulation. According to Whale Alert data, a whale trader transferred 4,000 BTC, valued at $205.30 million, to an unknown wallet via Coincheck, a Japanese crypto exchange.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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