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Crypto analyst Ash Crypto has warned the crypto community that $33.14 billion is at risk if the Bitcoin price reaches $72,462. This concerns the short positions which could be liquidated if the flagship crypto hits that price target, a development that will be bullish for BTC.
Nearly $33.14 billion will be wiped out if the Bitcoin price reaches $72,462
Ash Crypto mentioned the liquidation warning in an X-post, revealing that $33.14 billion worth of shorts will be liquidated as the Bitcoin price reaches $72,462. These BTC bears are already in danger of being liquidated as the flagship crypto is quickly approaching the $70,000 price level. This could pave the way for a sustained rally up to this liquidation price and even beyond.
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The liquidations of this Bitcoin shorts could be bullish for the flagship crypto, leading to an extended rally to new highs, especially with the current ATH of $73.00 coming into view once the price reaches $72,462. However, there is also a scenario where Bitcoin price could correct to flush out overleveraged lungs before continuing its upward movement.
For now, Bitcoin price undoubtedly has a bullish outlook given the way the flagship crypto has risen since the start of this week. BTC briefly reached $69,000 on October 18, raising further optimism that the crypto could reach a new ATH soon enough. Standard Chartered recently predicted it that this will likely happen before the November 5 US elections.
While that remains to be seen, it’s worth noting that demand for Bitcoin is on the rise again, which could fuel this rally to a new ATH. In particular, the Spot Bitcoin ETFs, which sparked a new ATH earlier this year, are actively accumulating again. SpotOnChain data shows that these Bitcoin ETFs witnessed net inflows of $2.13 billion this week. BlackRockin particular, added $1.14 billion worth of BTC to its holdings.
Bear analyst warns crypto traders
Analyst Justin Bennettknown for its bearish analysis, has warned traders to be cautious about trading during this recent Bitcoin price rally. He stated that things are not right and that remaining cautious during periods like these is the best way to survive. He added that he will not make bold predictions at this time because the data is conflicting.
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However, he suggested that market participants should not be excited about Bitcoin breaking out of the seven-month range. This followed his statement that the rally was mainly driven by perpetrators and such open interest is back to its late July high.
Crypto analyst CrediBULL Cryptowho has been a Bitcoin bear lately, also warned that the Bitcoin price rally is being driven by the perpetuals market. In a recent one X messagehe noted that open interest has officially surpassed the level before BTC’s last drop from $70,000 to $49,000.
Featured image created with Dall.E, chart from Tradingview.com
