- A Bitcoin price increase to the $72,000 level would liquidate $20 billion in short positions.
- Net exchange flows are up more than 10% and long position bulls remain dominant.
Bitcoin [BTC] short sellers are witnessing the squeeze as the market moves closer to a mass liquidation. According to one renowned analyst, a 10.6% price increase would be needed to liquidate $20 billion worth of shorts at $72,600.
This could lead to a series of buybacks and an even higher price as market participants rush to cover losses.
With such high stakes, the $72,600 level has been a major battleground for such huge bets from both bulls and bears.
If Bitcoin manages to break through this level, it could set off a chain reaction that could change market dynamics.
Source:
Bitcoin exchanges net flow increases by more than 10%
Adding fuel to the fire, Bitcoin exchanges’ net flows have increased by more than 13%, according to IntoTheBlock data. This measure gives an indication of how much money flows in and out of the stock market.
In general, such a sharp rise in the indicator may indicate that investors are already preparing for a huge move
More Bitcoin could hit the exchanges, gearing up for the anticipation of a price rise.
This net flow increase signals optimism among market participants on a breakout above resistance until the $72,600 mark is reached.
Source: IntoTheBlock
Long position takers are in control
According to data from CryptoQuant, long position investors currently dominate the market.
In fact, they are willing to pay financing fees to short traders. This trend suggests that the Bitcoin bulls are in control, further supporting the idea of an imminent upward price move.
Historically, it is usually an indication that long position takers are paying a premium to short traders because they believe the price is about to rise.
This funding rate further strengthens the bullish outlook as long as investors lay the groundwork for a high price increase if Bitcoin’s value moves against them.
Source: Cryptoquant
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Bitcoin is in a major price move that could liquidate billions in short positions. With Bitcoin net flows up over 10% and bulls on long positions dominant, there are signs that the market may be planning a breakout.
If Bitcoin reaches the $72,600 mark, it will trigger a massive liquidation event, which could force short sellers to close as the price could rise even higher.