Key Points
- Bitcoin’s price reaching $72,000 could trigger a wave of mass liquidations and a potential breakthrough of the $75,000 barrier.
- Above the $72,000 mark, over $1.2 billion worth of leveraged short positions could be liquidated.
Analyst Willy Woo predicts that a surge in the price of Bitcoin to $72,000 could act as a catalyst, potentially pushing the cryptocurrency through the significant $75,000 psychological barrier.
In a post to his 1.1 million followers, Woo suggested that reaching this price point could trigger a cascade of liquidations, clearing the path to new all-time highs. He estimates that $1.5 billion of short positions could be liquidated up to the $75,000 mark.
Bitcoin’s Performance and Resistance
Bitcoin’s price rose by 3.15% in the 24 hours leading up to June 5, trading at $71,124. On a weekly basis, the cryptocurrency has seen a 4.8% increase.
However, there is significant resistance at the $71,500 and $72,000 levels. CoinGlass data suggests that a move above $72,000 could lead to the liquidation of $800 million worth of cumulative leveraged short positions across various exchanges.
Liquidation and Breakout
If Bitcoin surpasses the $72,500 mark, it could trigger the liquidation of over $1.2 billion worth of leveraged short positions. Bitcoin is currently 3.4% down from its previous all-time high of $73,740, which it achieved on March 14.
Bitcoin’s price has risen over 12.5% since May 6, marking the end of the post-halving danger zone. On June 3, Bitcoin broke out of a significant two-week downtrend.
However, for Bitcoin to enter the “parabolic phase” of the bull cycle, it still needs to convert the $72,000 resistance into support.
