BTC price needs 5% dip to liquidate $2B of Bitcoin longs

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Bitcoin (BTC) will liquidate $2 billion of BTC long positions if it drops just $3,000 from current levels.

Data from monitoring resource CoinGlass shows traders making huge bets on BTC price trajectory.

Bitcoin trader: “Welcome to volatility city”

After plummeting $10,000 in hours following new all-time highs on March 5, Bitcoin has rebounded, making for a interesting situation on exchanges.

BTC/USD 1-hour chart. Source: TradingView

Traders are betting big on both sides of the current spot price, which is headed toward $67,400 at the time of writing after the March 7 Wall Street open, per data from Cointelegraph Markets Pro and TradingView.

CoinGlass underscores just how much is at stake: It would only take a dip to $64,286, for example, to liquidate $2 billion of long BTC positions.

$60,000 would see $2.33 billion of longs get the chop, with this still higher than the bounce zone of the $10,000 red daily candle.

To the upside, breaking the latest all-time highs of $69,210 would liquidate around $1.31 billion of BTC shorts, with the tally hitting $1.57 billion at $70,000.

Bitcoin exchange liquidity map (screenshot). Source: CoinGlass

As a reminder of market capability, BTC/USD saw a $1,000 move up and down in a matter of minutes after the latest Wall Street open.

“Doing $1K candles in 1 minute now,” popular trader Daan Crypto Trades reacted on X.

“Welcome to volatility city.”

New 30% BTC price correction warning

As Cointelegraph reported, the all-time high area represents a significant psychological barrier for current Bitcoin market participants.

Related: El Salvador Bitcoin holdings hit record $164M as BTC profits pass $50M

Beyond this, price discovery awaits, while some hodlers have waited years simply to break even on coins purchased at the previous highs in November 2021.

Analysts’ opinions on how high BTC/USD could go remain highly varied, with six-figure targets mixing with calls for an imminent top.

Among the latter camp is Michaël van de Poppe, founder and CEO of trading firm MNTrading.

“What’s next? We’ll sweep to $70K and take liquidity as a scenario,” he wrote in part of a recent X update.

Later, Van de Poppe doubled down on the idea that Bitcoin has little room left to run before April’s block subsidy halving event.

The correction, when it comes, he argued, could be 30%.

Source: @CryptoMichNL

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.