Bitcoin Dips to $71,000 Triggering Major Liquidation Wave

Over the past 24 hours, Bitcoin has undergone a notable comeback, taking the price above the $72k threshold after struggling recently. BTC initially dipped below $65K on April 3, but has seen impressive growth of over 10%, bringing the price back above $72k in the past 24 hours. However, the price has adjusted to $71,000 at the current moment.

Bitcoin’s joy only lasted a short time when the price temporarily fell below the threshold of 70 thousand USD, only remaining at 68 thousand USD afterwards. Meanwhile, short-selling traders quickly took advantage of this opportunity to open positions, betting on the price of BTC to fall.

Ali Martinez, one of the famous market watchers, highlighted this trend in a recent update. Martinez emphasized that there is a risk of major capital loss if Bitcoin quickly recovers from its price drop.

A lot of sellers in this recent downswing. Now, nearly $72 million will be liquidated if #Bitcoin rebounds to $70,875! pic.twitter.com/giVxiIQqTP

— Ali (@ali_charts) April 8, 2024

Data from derivatives market tracking platform Coinglass shows that nearly $72 million will be liquidated from Bitcoin traders if the asset price recovers to $70,875. At press time, BTC’s price hovered around $69,205, up just 2.4% from the recovery to $70,875. One user commented that Bitcoin sellers face great pressure given the significant amount of money they can lose, due to the proximity to their liquidation point.

Bitcoin has been on a steady uptrend to an intraday high of $72,700 at press time. Short Bitcoin operations are facing the risk of losses as the asset remains stable around the $72k area.

Furthermore, the latest data from Coinglass shows that in the past 24 hours, 51,087 traders lost $171.57 million in liquidations, with BTC short positions losing more than $63 million. The current liquidation trend among Bitcoin short sellers may persist, as on-chain data shows that Bitcoin bulls prevail, amid inflows into ETFs and the upcoming halving.