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Bitcoin at a Crossroads: $60K Support vs. $2 Billion Liquidations

Bitcoin at a Crossroads: $60K Support vs. $2 Billion Liquidations

Coinedition2024/09/19 16:00
By: Anisha Pandey
BTC+0.47%SOL+5.45%ETH+4.57%
  • Around $2.17 billion in longs will be liquidated if Bitcoin drops below $60,000.
  • Over $1 billion in shorts will be liquidated if Bitcoin breaks above $66,000.
  • If Bitcoin loses $60,000, $800 million in longs will be liquidated on Binance.

Bitcoin (BTC), the top digital asset, hovers near the $60,000 mark, despite a recent rally that pushed it past this level. The cryptocurrency aims to overcome the $64,000 resistance zone, but billions in liquidations loom.

Data from Coinglass’s Bitcoin Exchange Liquidation Map reveals that if BTC falls below the $60,000 price level, approximately $2.17 billion in longs will be liquidated from exchanges, with $208.62K liquidated on OKX and $57.97K on Bybit.

A significant concern is that if Bitcoin drops below $60,000, close to $800 million in longs will be liquidated on Binance. This liquidation could further trigger a price crash, leading to a cascading effect and an even more substantial price drop. Additionally, if Bitcoin declines to the $58,000 price level, over $2.25 billion in longs will be wiped out from the entire space.

Read also : Crypto Liquidations: Key Levels for BTC, ETH, SOL, and More

At the time of writing, the price of the cryptocurrency stands at $63,797.26, up around 3% in the past 24 hours with an 11.00% drop in its trading volume, which stands at $40.8 billion as per the data from CoinMarketCap. 

The market leader is down 13.5% from its all-time high of $73,750.07 witnessed in March earlier this year following the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States.

Potential for Short Liquidations

On the other hand, a mere $24.12 million in shorts will be liquidated if Bitcoin surpasses the $64,000 price level. If the market leader breaks through the $65,000 price level, $737.57 million in shorts will be eliminated from the crypto space, with $207.92K being liquidated on OKX.

Read also : Bitcoin Price Needs to Double to Boost Miner Revenue, Says PlanB

More than $1 billion in shorts will be liquidated from the crypto market if Bitcoin climbs above the $66,000 price level, with $108.64K being liquidated on OKX. The liquidation of shorts could further fuel a bullish rally in the price of BTC, which is up 9.76% in the last seven days and 7.30% in the past month.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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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