Bitcoin is going through a big change as more investors decide to hold onto their assets, showing rising trust in its long-term value, even with market ups and downs. Therefore Bitcoin’s recent movements have put traders on high alert, as top analyst MartyParty warns of a $10 billion short squeeze that could push the cryptocurrency’s price to new levels.
This makes for a dramatic showdown – yet again. Is it worth the worry? Let’s explore.
According to well-known crypto analyst MartyParty, Bitcoin’s current price levels suggest that many leveraged short trades could face liquidation, triggering a buying frenzy.
As Bitcoin nears $66,200, approximately $10 billion in short positions are at risk. In such scenarios, liquidated short trades automatically convert into spot buys, driving the price upward as shorts are closed out.
MartyParty explains that if Bitcoin breaks past this level, it could trigger a chain reaction of liquidations, sending the price to $70,300. At that point, another $16 billion in short positions would be at risk. If Bitcoin climbs further, to $72,578, an additional $18 billion in short trades could be liquidated.
Bitcoin is close to forming a “Golden Cross” on its weekly chart, a bullish sign that often predicts price rallies. With Bitcoin currently trading at $62,452, the MACD (a key momentum indicator) is trending upwards. At the same time, selling pressure is easing, suggesting more investors are choosing to hold rather than sell.
With steady trading volume and a recent 0.63% price gain, traders are growing more confident that a rally is near. In the past, Bitcoin’s Golden Cross formations in 2020 and mid-2021 led to some of its most significant price surges, including its rise to $70,000. If another Golden Cross forms, it could signal another major price jump.
Overall, Bitcoin’s current technical indicators and the potential for a large short squeeze have traders on high alert, watching to see if the cryptocurrency can make another big move towards new all-time highs.
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