As Bitcoin nears $90,000, $9.41 billion in short positions are at risk of liquidation. Analyst Seth highlights the potential for substantial market volatility if Bitcoin triggers a short squeeze. Current data shows the price is $83,029, with an increase expected, while a further breakout to $94,655 is anticipated after possible corrections.
The cryptocurrency market is experiencing heightened tension as Bitcoin approaches a crucial price threshold. Current analyses indicate that approximately $9.41 billion in short positions could face liquidation if Bitcoin reaches $90,000. This situation presents traders with significant potential risks as market dynamics shift.
Crypto analyst Seth, active on X (formerly Twitter), has highlighted the risk of widespread liquidations if Bitcoin continues to rise. His assessments suggest a concentration of short positions vulnerable to liquidation between the $80,000 and $90,000 marks, particularly at $90,000.
Seth’s analysis includes a Bitcoin liquidation heatmap, indicating that short sellers will be forced to close their positions as prices increase. This can drive Bitcoin’s price even higher due to forced buybacks by short sellers, escalating volatility in the market. Recent data shows that as Bitcoin rises, liquidation volumes are on the rise, further complicating short sellers’ positions.
A notable spike in short liquidations recently occurred, with a striking $77 million lost as Bitcoin surged to $87,000. The impending psychological barrier at $90,000 could trigger a wider short squeeze, pushing prices rapidly upward. Traders are advised to remain vigilant as BTC nears a potential breakthrough.
As reported by CoinMarketCap, Bitcoin was priced at $83,029 at the time of writing, reflecting a 1.12% increase within 24 hours. The approaching $90,000 mark signifies a potential 8.39% increase from its current valuation, making it a focal point for traders.
Market analyst Crypto Fella warns of possible short-term volatility but anticipates significant upward movement post-correction. He indicates that Bitcoin may dip to a support zone between $78,692 and $70,000 before targeting $94,655. This projection suggests a complex interplay of market forces that traders should carefully analyse.
