Key Points
- Bitcoin’s price fluctuations led to the liquidation of 79,700 traders’ funds within 24 hours.
- The Liquidation Heatmap suggests that Bitcoin could potentially hit $70,000 without major resistance.
Bitcoin’s recent price swings have resulted in both short and long positions being liquidated. This volatility has affected 79,700 traders, who have seen their funds wiped out in the last 24 hours. This occurred as Bitcoin’s price surged past $64,000 on February 28th, only to dip below the $60,000 threshold shortly afterwards.
According to data from Coinglass, the total liquidation amount exceeded $790 million. Short positions made up $438 million of this figure, while long liquidations accounted for approximately $352 million.
Bitcoin and Ethereum Liquidations
The derivatives information portal also revealed that Bitcoin liquidations were valued at $298.98 million. Ethereum (ETH), whose price had surged above $3,300, registered $126.83 million in liquidations.
Liquidation typically occurs when a trader’s leveraged position is automatically closed due to insufficient margin requirements. If Bitcoin’s price continues to rise, more positions could be liquidated.
The Liquidation Heatmap was used to predict the likelihood of a price increase. The data suggested that Bitcoin’s price could potentially reach $75,000 in the coming weeks, with no major resistance in sight. However, if Bitcoin hits $70,000, short positions between $49,000 and $56,000 could face liquidation.
Bitcoin’s Price Potential
On the daily timeframe, solid support was found at $55,450. During the run to $64,000, Bitcoin encountered minor resistance at $57,395, but buying pressure cleared the path. Bitcoin registered a 15.01% increase between the solid support and its rise to $61,837.
The Directional Movement Index (DMI) projected a potential further increase for Bitcoin. At press time, the +DMI (green) was 39.34, while the -DMI (red) was 2.62. This discrepancy indicates that bears may not have a chance of pulling Bitcoin down.
The Average Directional Index (ADX) reading was 57.82. A high ADX alongside Bitcoin’s rising price suggests that the coin might hit a higher value soon.
If buying pressure continues as it has in recent days, Bitcoin could surpass the $69,000 mark. However, if bearish forces gain market dominance, Bitcoin’s price could drop to $55,000. Currently, the indicators suggest a potential upswing.
