Bitcoin price continues to fluctuate wildly after crashing from all-time highs above $73,000. This has created a wave of bearish sentiment in the market, causing a large number of crypto traders to short the pioneering cryptocurrency. As a result, these bears lose and risk a large amount if the Bitcoin price resumes its bullish rally.
Bears will lose $7.2 billion if Bitcoin hits all-time highs
In a message shared on X (formerly Twitter), crypto analyst Ash Crypto revealed an interesting trend regarding Bitcoin that is developing. The screenshot shared shows that a large number of short trades have been placed on BTC, with the expectation that the price could fall further.
So far, these bulls appear to be right as Bitcoin has failed to successfully clear $67,000. However, they stand to lose a lot of money if BTC is able to clear this resistance and move back up. According to Ash Crypto, there are more than $7.2 billion worth of BTC shorts that are at risk of liquidation if Bitcoin were to reach a new all-time high above $74,000.
At the time, Bitcoin price had rebounded above $66,000, causing a wave of bearish activity in the market. However, these bears appear to have succeeded as the BTC price has fallen below $64,000 at the time of writing.
As a result, the bears are encouraged, with the expectation that the Bitcoin price will still rise from here on out. So far, the risks of the liquidation trends have continued to rise as the BTC price falls. Coinglass data shows that if Bitcoin were to recover above $44,000 and reach a new all-time high, the bears would lose more than $10 billion.
Source: Coinglass
BTC bulls don’t give up
Although Bitcoin bears appear to be making profits as the price of Bitcoin falls, the bulls are far from done. Instead, they have used this price drop as an opportunity to fill their coffers. This accumulation is even more prominent among Bitcoin whales, who have snapped up 1.4% of the total supply over the past month.
On-chain data tracker Santiment reported that Bitcoin whales added 266,000 BTC to their balance in the past four weeks. The cohort responsible for this are those who own between 1,000 and 10,000 BTC, making them the mega whales. In total, they spent $17.8 billion buying BTC in just one month.
As a result of this accumulation, these 1,000-10,000 BTC whales now own 25.16% of all existing BTC. Their numbers are also rising, with Santiment identifying this as the “highest bullish bias from the public since all-time high week in early March.”
For now, Bitcoin continues to struggle with the bears to hold the $63,000 support. The price is down 4.05% over the past day and is trading at $63,600 at the time of writing.
BTC bears pull price down | Source: BTCUSD on Tradingview.com
Featured image from Coinpedia, chart from Tradingview.com
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