The recent crypto market correction aligns with Bitcoin Liquidation Heatmap data, indicating a possible $2.7 billion short liquidation if BTC hits $67,000.
The worldwide cryptocurrency market capitalization abruptly dropped during the recent major correction in the cryptocurrency industry. The likelihood of a significant $2.7 billion Bitcoin short liquidation once BTC hits the critical level of $67,000 was indicated by the Bitcoin Liquidation Heatmap data, which coincided with this decline.
The current value of Bitcoin (BTC) is $61,601.75, and the 24-hour trading volume of the cryptocurrency is $21.6 billion. The price of Bitcoin dropped by 1.62% on the last day.
Despite the imminent risk of a $2.7 billion Bitcoin short liquidation at $67,000, the cryptocurrency’s price has been contained inside a sizable declining channel pattern with lower highs and lows.
The general momentum seems less damaging even though some see current price action as suggesting a nasty market reversal and slump. The market attitude is toward the channel’s higher limit, and the $60K support zone has demonstrated its resilience several times.
However, the next obstacle to a rally toward the all-time high is breaking through the $63,000 mark. On the other hand, a break over $60.5K would trigger a drop below the $52,000–$55,000 support area, which might result in a market meltdown.
There has been a rebound to bullish momentum, as shown by the Relative Strength Index (RSI) surpassing the 50% threshold. As a result, a break over $63,500 may open the door for a rally that takes the market to new all-time highs by pushing it near and above the channel’s median.
A bullish continuance may be hampered by the Coinbase premium gap’s unpredictable character, especially its downward trend. It highlights intense selling pressure from US investors, notably affluent individuals and institutions.
After the last red candle on May 10, Bitcoin saw three consecutive daily green candles, maintaining the uptrend with a 2.1% climb to $62,634. However, until support at the 20-day and 50-day Exponential Moving Averages (EMA) is regained, the cryptocurrency will likely remain risky.
The Moving Average Convergence Divergence (MACD) indicator, currently at -864 and with short green histograms, suggests a somewhat optimistic outlook; however, sell-side pressure is still possible.
Traders ought to be cautious, especially amid different macroeconomic events. It is still possible for the price to fall below $60,000; a correction might reach $56,500 or even $50,000.
On the other hand, encouraging Consumer Price Index (CPI) statistics can boost investor confidence and cause the price of Bitcoin to rise to $70,000. Beyonding resistance levels at $65,000 and $67,500 are significant benchmarks likely to increase FOMO.
