TL;DR
- If Bitcoin reaches $72,000, it could trigger the liquidation of $800 million in short positions, driving the price to new all-time highs.
- BTC has risen 3.02% in 24 hours, trading at $70,954, and is facing key resistance between $71,500 and $72,000.
- Analysts like Willy Woo and Rekt Capital indicate that consolidation above $72,000 could mark the beginning of a parabolic bullish phase.
Bitcoin’s price could be on the brink of heading towards new all-time highs, according to the latest market analysis. Experts suggest that if the cryptocurrency reaches $72,000, it could trigger a series of massive short position liquidations, acting as a “fuse” to push its price beyond $75,000.
In the early hours of June 5, Bitcoin experienced a 3.02% increase in 24 hours, trading at $70,954, representing a 4.63% increase over the past week. This upward movement has placed BTC at the threshold of critical resistance around $71,500 and $72,000. If these levels are surpassed, it could trigger a chain reaction in the derivatives market.
BREAKING: (F*ck knows what "breaking" means but people click on it).
Tapping 72k is the fuse that's set to start a liquation cascade. $1.5b of short positions ready to be liquidated all the way up to $75k and a new all time high. https://t.co/uYugscJkVF pic.twitter.com/23rspMcgLT
— Willy Woo (@woonomic) June 5, 2024
Analyst Willy Woo, with 1.1 million followers on the social network X, stated that a rise to $72,000 could trigger the liquidation of $800 million in leveraged short positions, facilitating a rise towards $75,000 and potentially a new all-time high. Woo explained that this cascade of liquidations would be sufficient to push Bitcoin’s price beyond its previous high of $73,740, reached on March 14.
CoinGlass, the cryptocurrency analysis platform, supports Woo’s theory. Their data shows that a break above $72,000 would liquidate $800 million in short positions, and an additional move above $72,500 would result in the liquidation of over $1.2 billion in leveraged short positions.
Bitcoin Has Already Moved Away from Its Danger Zone
From a technical perspective, Bitcoin has broken a two-week downtrend. Rekt Capital commented that although temporary increases have been observed in the past, a convincing daily close above the current resistance is needed to confirm this breakout and turn the $72,000 level into new support.
BTC has shown significant progress in its recovery. Since May 6, when it consistently broke above the accumulation range of $60,000, it marked the end of its post-halving “danger zone.” Since then, the price has risen over 12.5%, establishing a solid base from which to climb further.
Consolidation above $72,000 could mark the start of a parabolic phase in BTC’s bullish cycle, potentially driving its price to unprecedented levels. With key resistance at play and a market ready to react, the coming days will be crucial for Bitcoin.
