BTC is currently consolidating, and a crypto analyst has warned of a large $3 billion short liquidation if the Bitcoin price rises beyond $71,900.
Prominent cryptocurrency analyst Crypto Rover examined the ongoing consolidation phase of Bitcoin (BTC) in a recent YouTube update.
Additionally, he emphasized that substantial short liquidations are possible should the price of Bitcoin reach $71,900.
Rover emphasized the substantial accumulation of liquidity at the upper end of the spectrum.
Analyst Cautions Against Extreme BTC Short Liquidation
Rover estimated in the YouTube video that Bitcoin short liquidations exceeding $3 billion are pending at the specified price level.
The analysis emphasized the significance of vigilance over short-term price movements, historical patterns, and funding rates.
Furthermore, Rover identified a significant futures gap that emerged over the weekend, indicating the potential for a surge to close the gap in light of historical market trends.
However, Rover conveyed optimism regarding the ascent of Bitcoin, referencing the reestablishment of significant metrics such as the Relative Strength Index (RSI).
Rover interprets the RSI’s descent into levels not observed since January 2022 as a positive indicator.
In addition, the analyst alluded to the possibility of upward momentum.
Furthermore, he delineated a plan to exploit a 20% downturn to amass more Bitcoin at reduced prices.
The analyst emphasized the importance of liquidity in influencing the fluctuations of Bitcoin, highlighting that the majority of liquidity is accumulating on the higher side.
Rover emphasized the relationship between the volume of USDT transactions and the price movement of Bitcoin.
As he hypothesized, the increased minting of USDT indicated a heightened interest in cryptocurrencies.
Despite characterizing the current phase of market consolidation as “extremely tedious,” Rover maintained a positive outlook for Bitcoin.
He advised forbearance throughout this phase, expecting a swift resurgence once the consolidation phase concludes.
In addition, the forthcoming short squeeze may cause Bitcoin’s price to increase even further.
Even so, that would increase the likelihood of a catastrophic waste disposal.
Rover provided a concise overview of altcoins, including Bitcoin, and highlighted a recent drop in the altcoin market, presenting a favorable circumstance for acquiring them at reduced prices.
Bitcoin Maintains Its Price Above $66,000
Amid the recent massive market collapse, Bitcoin recently fell below $61,000.
This second collapse of the month has resulted in a value loss of over 10% for Bitcoin.
However, the price of Bitcoin recovered and surpassed $66,000 today, maintaining its momentum.
The price of Bitcoin increased by 3.35% to $66,300.94 as of press time on Monday, April 15.
In contrast, the 24-hour transaction volume of the cryptocurrency decreased by 29.55%, amounting to $43.23 billion.
In contrast, Bitcoin possessed a market capitalization of $1.30 trillion.
