Bitcoin price at $72K is the 'fuse' to reach new ATH: Analyst
If the price of Bitcoin reaches $72,000, it would act as a “fuse,” triggering the breakthrough of the $75,000 psychological barrier.
Bitcoin ( BTC ) hitting $72,000 would spark a wave of mass liquidations, paving the way to new all-time highs, according to analyst Willy Woo.
Woo wrote in a June 5 X post to his 1.1 million followers:
“Tapping $72k is the fuse set to start a liquidation cascade. $1.5b of short positions ready to be liquidated all the way up to $75k and a new all-time high.”Liquidation leverage chart. Source: Willy Woo
Bitcoin rose 3.15% in the 24 hours leading up to 8:05 am UTC on June 5 to trade at $71,124. The world’s first cryptocurrency is up 4.8% on the weekly chart, according to CoinMarketCap data .
BTC/USDT, 1-day chart. Source: CoinMarketCapRelated: Roaring Kitty’s $300M GME position sparks market manipulation claims
Bitcoin at $72,000 would liquidate $800 million worth of leveraged shorts
Bitcoin price faces significant resistance at the $71,500 and $72,000 mark.
According to CoinGlass, a potential move above $72,000 would liquidate $800 million worth of cumulative leveraged short positions across all exchanges.
Bitcoin Exchange Liquidation Map. Source: CoinglassAbove the $72,500 mark, Bitcoin would trigger the liquidation of over $1.2 billion worth of leveraged short positions. Currently, Bitcoin is down 3.4% from its previous all-time high of $73,740, which was reached on March 14.
Bitcoin’s post-halving distribution “danger zone ” ended on May 6, when Bitcoin firmly rose above the reaccumulation range of $60,000, according to popular crypto analyst Rekt Capital.
Bitcoin’s price has risen over 12.5% since May 6, confirming the end of the post-halving danger zone.
BTC/USDT, 1-day chart. Source: TradingViewRelated: Will Bitcoin benefit from a European Central Bank rate cut?
Bitcoin breaks two-week downtrend
Bitcoin price broke out of a significant two-week downtrend on June 3, wrote Rekt Capital in an X post :
“Bitcoin broke its two-week downtrend today. However, we have seen upside wicks beyond this downtrend before. Which is why a Daily Close later today is needed to confirm this breakout.”BTC/USD, 1-day chart. Source: Rekt Capital
However, Bitcoin still needs to turn the $72,000 resistance into support, before it enters the “parabolic phase” of the bull cycle, according to Rekt Capital.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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