More than $1 billion in bearish bets will be wiped out from the Bitcoin (CRYPTO: BTC) futures market if King Crypto spikes to $62, 600, according to a noted cryptocurrency analyst.
What Happened: Ali Martinez, known for studying on-chain and technical indicators to gauge price directions, highlighted this possibility in a Tuesday X post.
"Over $1 billion will be liquidated if Bitcoin now rebounds to $62,600," Martinez wrote.
Over $1 billion will be liquidated if #Bitcoin now rebounds to $62,600! pic.twitter.com/6gBiTTkPiH
— Ali (@ali_charts) July 3, 2024
The high short liquidation leverage indicated that most traders are bearish on the asset, and at risk of significant losses if the market moves against them.
Lending credence to the above observations, the number of traders holding short positions for Bitcoin was higher than those holding long positions, as exhibited by the Long/Short Ratio on Coinglass.
Why It Matters: Bitcoin has dragged lately owing to investors' anxiety over defunct exchange Mt.Gox's liquidation of $9 billion worth of the currency as part of its repayment obligations. The sell-offs are expected throughout July.
That said, analysts, including top Wall Street strategist Tom Lee, predict a sharp rebound from next month, sticking to his earlier forecast of the digital currency hitting $150,000 in the second half of 2024.
Price Action: At the time of writing, Bitcoin was exchanging hands at $60,907.44, down 2.7% in the last 24 hours, according to data from Benzinga Pro.