According to data from CoinMarketCap, Bitcoin (BTC) has maintained its upward price trajectory over the past day, rising 4.04% to briefly trade above the $48,000 mark. While BTC is now hovering around the $47,100 price zone, investors and market experts remain highly speculative about the token’s next action. In that regard, popular analyst Ali Martinez has made a big prediction that could mean heavy losses for many investors.
Liquidity hunters target $45,810 in potential Bitcoin price manipulation plot
In a X message on FridayMartinez predicted a coming dip in Bitcoin’s price caused by a planned liquidation. Using data from cryptocurrency futures trading platform CoinGlass, the analyst stated that the Bitcoin liquidation heatmap indicated that a potential strategic liquidation is in play.
According to the #Bitcoin liquidation heatmap, a potential strategy is unfolding that liquidity hunters could drive up the price of $BTC up to $45,810. This move is aimed at triggering liquidations worth $54.73 million! pic.twitter.com/monFlZmvQ6
— Ali (@ali_charts) February 9, 2024
Martinez stated that liquidity hunters in the BTC market could try to push the token’s price to $45,810 for personal benefits. For context, liquidity hunters are traders or investors who actively look for opportunities in the financial markets to take advantage of changes in liquidity.
This group of market players often focuses on specific price levels where there is a concentration of stop-loss orders or where market liquidity is expected to be scarce. By priming liquidity or capitalizing on price movements, liquidity hunters attempt to take advantage of short-term market inefficiencies.
According to Martinez, liquidity hunters in the BTC market are currently looking for an estimated 3% drop in the token’s price. While this change may seem minimal, it represents an astonishing $54.73 million in liquidations. Based on these numbers, BTC traders and investors should be wary of potentially significant losses in the coming days.
BTC price overview
The leading cryptocurrency has recently taken off, rising 8.6% over the past two days after a flat consolidation period that stretched into early February. Interestingly, the asset’s path to higher gains appears more confident given recent developments in the Bitcoin spot ETF market, which recorded total net flows of $403 million on February 8 – the highest value of that metric since January 17.
At the time of writing, Bitcoin is trading at $47,238, with a gain of 0.26% in the past hour. Meanwhile, the coin’s daily trading volume has increased by 56.33% and is now valued at $39.42 billion. Moreover, BTC maintains its top position in the crypto market with a total market capitalization of $924.67 billion.
BTC trading at $47,229 on the daily chart | Source: BTCUSDT chart on Tradingview.com
Featured image from Nairametrics, chart from TradingView
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