Bitcoin Bears In Trouble: $800 Million Set For Liquidation If BTC Reclaims This Price

Ash Tiwari

6 months ago

3 mins read

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Bitcoin (BTC) has been on a tear recently, hitting multiple all-time highs (ATH) levels since Donald Trump emerged victorious in the 2024 US presidential elections. Although the top cryptocurrency has witnessed a slight pullback in the past 24 hours, rebounding to an earlier price level could spell trouble for the bears.

Bitcoin Bears Could Be Under Trouble

According to analysis shared by crypto analyst Ali Martinez on X, more than $800 million is at risk of liquidation if the flagship digital asset reclaims the $93,000 price level. Notably, BTC’s current ATH stands at $93,477.

At the time of writing, BTC is trading at $89,480, down 1.9% in the past 24 hours. On the 4-hour chart, BTC’s next prominent support level appears to be around the $86,000.

The digital asset has already tested this support level three times, and a further dip to this price could send BTC tumbling toward $81,600, its next major support. If BTC fails to hold above $81,600, a decline to $79,700 may follow.

While a lower BTC price would favor the bears, a reclaim of the $93,000 level could severely hurt them. Such a move would risk over $800 million in liquidations, potentially forcing bearish traders to capitulate.

Data from Coinglass shows that contracts worth more than $508 million were liquidated in the past 24 hours. Of this, $355 million were long, while $153 million were short.

A recent analysis by prominent crypto analyst @CryptoKaleo suggests that Martinez’s warning for bears may be justified. According to @CryptoKaleo, BTC could retrace to $86,000 before embarking on another rally to set new ATHs – possibly beyond $100,000. The analyst stated:

Just a little dip and a bit more ranging then send to $100K+. Honestly think this is the best case scenario for alts if we somehow get it. Would look for outperformance while BTC is accumulating around $90K.

What’s Behind BTC’s Run?

Multiple factors have contributed to BTC’s historic price action, including the halving earlier this year, the approval of Bitcoin exchange-traded funds (ETFs), and rising institutional adoption of the digital asset.

However, Trump’s win in the 2024 US presidential elections – a result seen as pro-crypto – served as a major catalyst for BTC’s surge. Since Trump’s victory on November 5, BTC has climbed from around $69,000 to a high of $93,000, recording gains of more than 30% in just 10 days.

Despite this impressive price rally, experts suggest that BTC may have further room to grow. For instance, a recent research report predicts that BTC’s bullish momentum could continue until mid-2025 when it is expected to peak.

Additionally, relatively low profit-taking during this bull run could further propel BTC to new heights. However, bulls should remain cautious of a significant CME gap around the $78,000 level, which could be a magnet for price correction.

At the time of writing, the total cryptocurrency market capitalization stands at $2.904 trillion, reflecting a 3.7% decline over the past 24 hours. Meanwhile, Bitcoin dominance is at 60.97%, underscoring BTC’s continued strength in the market.

Featured image from Unsplash, Charts from X, Coinglass, and Tradingview.com

Ash Tiwari

Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand.

Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance.

In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects.

A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution.

When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights.

Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries.

Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all.

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