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Bitcoin nears key levels, short squeeze imminent

The essentials in brief:
  • Bitcoin is approaching key liquidation levels that could trigger a short squeeze.
  • At a price of USD 66,200, USD 10 billion in short positions could be liquidated.
  • Further liquidation levels at USD 70,300 and USD 72,578 could strengthen the upward trend.
  • A short squeeze could significantly drive up Bitcoin’s price.

What is a Short Squeeze?

A short squeeze occurs when traders betting on falling prices are forced to close their positions because the price is rising. This leads to increased demand for the asset in question, pushing the price further up. For Bitcoin, such a squeeze could be imminent as the price approaches key liquidation levels.

Liquidation at USD 66,200: The first trigger

Bitcoin’s price is approaching the USD 66,200 mark. At this point, USD 10 billion in short positions could be liquidated. These liquidations would be converted into buys, which would likely increase upward pressure on the price. Such a rise could trigger a chain reaction, further driving the price upward.

Further liquidation levels at USD 70,300 and USD 72,578

If Bitcoin breaks through the USD 66,200 mark, the next significant level is at USD 70,300. Here, a further USD 16 billion in short positions could be liquidated. Another rise to USD 72,578 could potentially affect USD 18 billion in short positions. These liquidations could push the price even higher and possibly trigger a larger upward trend.

Market activity and interest are increasing

Since September 7, open interest in Bitcoin has been rising, indicating increased participation from traders. At the same time, inflows to exchanges have increased, suggesting heightened trading activity. These factors indicate that many market participants are preparing for potential price movements.

Our assessment

The coming days could be crucial for Bitcoin. If the price reaches the mentioned liquidation levels, a short squeeze could drive the price significantly higher. However, the high volatility could also pose risks. It remains exciting to see how the market develops and whether the expected liquidations will actually occur.

Sources: Coinglass, CryptoQuant

Casinos: 50
Profile Bitcoin
Symbol BTC
Coin type Alt Coin
Transaction Speed Slow
Pros
  • First cryptocurrency, therefore very widespread
  • Largest selection of casinos among the coins
  • Many BTC based bonus offers
Cons
  • Fairly low transaction speed
Price $79,405.00
24h % 4.04 %
7d % 16.69 %
30d % 28.29 %
60d % 42.04 %
1y % 113.90 %
Market Cap $1,578,458,693,566.00
Max. Supply 21,000,000.00
Official Links
Socials Reddit | X | Message Board
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Last update: 8. October 2024

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