Analyst predicts Bitcoin reaching 72K could ignite a new record high
Bitcoin (BTC) experienced a significant surge, reaching its highest point in the past two weeks at $71,000, just shy of its all-time high. Analysts are predicting that if it surpasses the critical $72,000 mark, it could trigger a massive wave of liquidations and set new records.
Renowned crypto analyst Willy Woo recently shared insights from the Bitcoin Liquidation Heatmap on X (formerly Twitter). He pointed out that if BTC hits the crucial $72,000 mark, there is a potential for $1.5 billion worth of Bitcoin short positions to be liquidated.
CoinGlass, a cryptocurrency platform, states that a move above $72,500 could lead to the liquidation of over $1.2 billion in leveraged short positions.
Rekt Capital, another prominent trader, supports Woo’s analysis. In a recent post, Rekt Capital highlighted that Bitcoin has broken out of a significant two-week downtrend. He emphasized the need for Bitcoin to close above resistance levels to confirm the breakout. Based on historical patterns, he suggests that Bitcoin might consolidate between $68,000 and $71,500 before entering a phase of upward movement.
These predictions align with Woo’s forecast that hitting the $72,000 level would trigger substantial liquidations and pave the way for new all-time highs.
Currently, Bitcoin is valued at $70,765, with a 24-hour trading volume of $37.6 billion. Despite recent volatility, Bitcoin has seen a 2.85% increase in the past 24 hours, indicating a significant recovery.
Technical indicators paint a bullish picture for Bitcoin. The Relative Strength Index (RSI) sits at 62, indicating strong buying pressure, and the positive MACD level at 1182 suggests upward momentum. Additionally, open interest in Bitcoin has surged by 5%, reaching a valuation of $37.5 billion.
However, the TD Sequential has flashed a sell signal on the hourly chart, hinting at a potential short-term price correction. This contrasting signal emphasizes the importance of exercising caution and considering other factors before making investment decisions in Bitcoin’s volatile market.
Disclaimer: The content on this site should not be considered investment advice. Investing in Bitcoin is speculative, and there is a risk of capital loss.