Renowned crypto trader and analyst Ali Martinez has issued a stark warning regarding Bitcoin‘s price trajectory, pinpointing a crucial level that could unleash over $15 billion in liquidations across the market. This assessment follows a recent downturn that saw Bitcoin plummet below its cycle high of $62,222.
Martinez underscores $50,500 as a pivotal threshold for Bitcoin’s stability, emphasizing that breaching this level could trigger massive liquidations, particularly on the Binance exchange, where the potential liquidation sum surpasses $15 billion. This level holds significance as Bitcoin’s lowest point since achieving its all-time high of $59,773.
The implications of such substantial liquidations extend beyond Bitcoin, exerting considerable pressure on the broader cryptocurrency market, potentially catalyzing further price declines.
Liquidations, the involuntary closure of traders’ positions due to insufficient funds to cover losses, become inevitable when market movements unfavorably impact a trader’s position, depleting their initial margin.
Recent data from CoinGlass reveals that Bitcoin has witnessed liquidations totaling $95.97 million within the past 24 hours, with long positions accounting for $62.7 million and short positions $33.24 million. Binance leads in liquidations, recording the highest order at $103.9 million, trailed closely by OKX with $92.68 million within the same period.
Bitcoin’s current price sits at $61,712, marking a 1.99% decline in the past 24 hours, with a market capitalization of $1.2 trillion. This recent dip below $60,000 signals a significant market shift, marking the first time in over a month that Bitcoin has breached this threshold. The cryptocurrency’s journey from a low of $59,313 on March 5 to its subsequent all-time high of $73,679 on March 13 illustrates the volatility characterizing its recent performance.
