- If Bitcoin falls below $50K, $870 million worth long positions would be liquidated.
- $1.53 billion in short positions would be liquidated if BTC jumps above $58K.
- If BTC breaks above $60K, over $2 billion worth of short positions will be liquidated.
Bitcoin is teetering on the edge of a potential major sell-off as its price hovers near a critical liquidation threshold of $50,000, according to data from Coinglass.
At the time of writing, Bitcoin is priced at $55,500. However, Coinglass data indicates that leading exchanges could liquidate approximately $870 million worth of long positions if BTC’s price drops below the crucial $50,000 mark.
The $50,000 price point has been a psychological and technical support level for Bitcoin, and a drop below it could trigger a wave of sell-offs. Two major contributing factors to the potential decline are the Mt. Gox repayment plan and the German government’s Bitcoin sell-off. These two entities were primary catalysts for Bitcoin’s fall below the $60,000 price level.
According to CoinMarketCap data, the leading cryptocurrency is 24.56% down from its all-time high of $73,750, reached on March 14. Meanwhile, the bullish sentiment that followed the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) in early 2024 has gradually faded.
According to Coinglass, more than $200 million in long positions would be liquidated from the crypto market on Binance, the world’s largest crypto exchange, if Bitcoin dipped below $50,000. Conversely, if Bitcoin surpasses $58,000 and reaches $58,033, it will liquidate over $1.53 billion in short positions, including $1.23 million on Bybit. Furthermore, if BTC surpasses $60,000, the event will liquidate $2 billion worth of short positions.
According to a TradingView chart analysis, the Relative Strength Index (RSI) for BTC has a value of 30.12. Bitcoin price action is currently in the bearish region and has rebounded from oversold levels. This may present buying opportunities for investors.
The Bitcoin price action is currently situated at the lower end of the Bollinger Bands as the selling volume has surged. There is a possibility of a bearish breakout and the formation of a downtrend if investors fail to take advantage of bearish RSI levels.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
