Key Points
- Bitcoin (BTC) could liquidate $2 billion of BTC long positions with a $3,000 drop from current levels.
- The current market situation is interesting, with traders making significant bets on BTC's price direction.
Bitcoin (BTC) stands on the edge of a significant shift in the market.
A mere $3,000 drop from current levels could trigger a liquidation of $2 billion in BTC long positions.
The Current Market Scenario
BTC experienced a swift drop of $10,000 in a few hours following new all-time highs on March 5.
However, it has since rebounded, creating a fascinating situation on exchanges.
Traders are wagering heavily on both sides of the current spot price, which was moving towards $67,400 at the time of writing after the March 7 Wall Street open.
Data shows that a dip to $64,286 could liquidate $2 billion of long BTC positions.
A further drop to $60,000 could lead to the liquidation of $2.33 billion of longs, a figure still higher than the bounce zone of the $10,000 red daily candle.
Conversely, breaking the latest all-time highs of $69,210 could liquidate around $1.31 billion of BTC shorts, with the tally hitting $1.57 billion at $70,000.
Market Volatility and Predictions
The latest Wall Street opening saw a swift $1,000 move up and down for BTC/USD within minutes.
This volatility has led to some traders referring to the current market as "volatility city".
The all-time high area represents a significant psychological barrier for current Bitcoin market participants.
Predictions on how high BTC/USD could go are highly varied, with some foreseeing six-figure targets while others anticipate an imminent top.
Michaël van de Poppe, founder and CEO of trading firm MNTrading, is of the opinion that Bitcoin has little room left to run before April’s block subsidy halving event and that a correction could be as high as 30%.
