Key Points
- Bitcoin’s major liquidation levels are at $66,700 (high) and $65,450 (low), with potential to fall to $63,000.
- Former hedge fund manager James Lavish suggests Bitcoin could rise to $428,000 if it captures 1% of the global investment market.
Bitcoin’s substantial liquidation levels were marked at $66,700 on the higher end and $65,450 on the lower end. However, historical data indicates that Bitcoin could potentially drop to the $63,000 mark.
The entire cryptocurrency market was witnessing significant selling pressure, with Bitcoin [BTC], the largest cryptocurrency globally, dropping to the $65,500 level.
Bitcoin’s Potential Rise
In light of this price drop, James Lavish, a former hedge fund manager, suggested on X (formerly Twitter) that BTC could escalate to $428,000 if it manages to capture 1% of the total global investment market.
Lavish pointed out that the current total investment assets globally amount to $900 trillion, with BTC accounting for just 0.15% of the total at $67,000. If BTC were to capture merely 1% of these assets, its value could surge to an impressive $428,000.
Aside from this perspective, investors and whales also appeared bullish on Bitcoin. Julien Bittel, a crypto analyst, recently predicted that BTC could reach the $190,000 mark.
Bitcoin’s Price Performance
At the time of writing, BTC was trading near the $66,000 level and had experienced a 1.35% price drop in the last 24 hours. The trading volume also decreased by 28% during the same period, indicating reduced participation from traders and investors.
BTC’s Open Interest (OI) also fell by 4%, which, according to on-chain analytics firm CoinGlass, suggests fear in the market.
If market sentiment remains the same and BTC falls to the $65,450 level, $275 million of long positions will be liquidated. Conversely, if sentiment changes and the BTC price rises to the $66,700 level, $233 million of short positions will be liquidated.
Bitcoin Price Prediction
According to expert technical analysis, BTC appeared bearish at press time and may drop to the $63,300 level in the upcoming days. The potential reason for this bearishness is the recent price rejection from a strong resistance level of $70,000.
Historical data reveals that BTC has reached this level five times since March 2024, and each time it faced rejection and experienced a significant price drop. This time, similar speculation suggests that BTC could fall again.
The Relative Strength Index (RSI) also supports this bearish outlook, as its value was in the overbought area at press time. The RSI value in the overbought area often signals upcoming price reversals of assets.
