- Analyst Crypto Rover raised an alarm about a potential liquidation of $3 billion in the Bitcoin market.
- With the observed rising liquidity, the liquidation could trigger against BTC shorts if the asset reclaims $71,900.
- At $66,607, BTC only needs to rally 7.94% to regain the $71,900 price point.
Crypto Rover, a notable market analyst, has called attention to a looming potential liquidation of $3 billion in the Bitcoin market. In his latest BTC market analysis, Rover revealed that the asset continues to undergo a significant consolidation phase within the daily timeframe.
Meanwhile, he observed that although Bitcoin currently trades at the lower end of the range, liquidity is accumulating on the upper side. In parallel, Rover highlighted that over $3 billion worth of Bitcoin short positions are poised for liquidation once Bitcoin reaches the $71,900 mark.
The analyst derived this figure using data from the renowned derivative market tracker CoinGlass. Rover’s warning of an impending $3 billion liquidation coincides with the recent crypto market downturn, during which Bitcoin retraced to the $60K range over the weekend.
The crash wielded substantial consequences for leveraged traders, particularly those with long positions on BTC. For instance, WhaleWire revealed that over $1.2 billion in Bitcoin longs were liquidated on April 13 alone. It noted that the figure marked a new record, as Bitcoin bulls have not faced such liquidation in the past 15 years.
Notably, updated figures from CoinGlass suggest that the crypto market has seen a total liquidation of $236.61 million in the last 24 hours. The most significant single liquidation order was placed on the Bybit exchange for the BTC/USDT pair, valued at $5.65 million.
The liquidation comes amid Bitcoin rebounding to reach as high as $66,607 at press time. This figure marked a 9.37% gain from the weekend dip. Interestingly, at $66,607, BTC only needs to rally 7.94% to regain the $71,900 price point, which would liquidate over $3 billion from Bitcoin shorts, as the analyst suggested.
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