- Over $2.5 billion liquidations could trigger when BTC reclaims the $125,000 price area.
- Analyst expects a local bottom at $119,000 before a new $130,000 ATH.
- Traders aiming to short BTC could be wiped out in one shot.
The crypto market saw an interesting start to Q4, with the price of Bitcoin (BTC) , the pioneer crypto asset, going on to set new ATH prices in under 72 hours. In detail, the price of BTC surpassed $125,000 and set its third latest ATH price in the $126,000 price range . Presently, the price of BTC is trading in the $121,000 price range, and analysts say many traders will try to short, thus, over $2.5 billion short liquidations could trigger when Bitcoin breaks above $125,000 again.
Over $2.5 Billion Short Liquidations Could Trigger
The last time Bitcoin set a new ATH back in Q3 was in the month of August, when the price of BTC hit a new ATH in the $124,000 price range. Soon after this target was met, the price of BTC went on to decline until it dropped to the $108,000 price range. While some analysts believed a drop to $90,000 wa coming, others were certain that the correction phase was over. Accordingly, the price of BTC then rallied to close Q3 in a bullish green state.
This allowed Q4 to have an excellent bullish start that raised expectations for Bitcoin to hit much higher ATH prices in the coming days ahead. In detail, the price of BTC went on to hit two new consecutive ATH targets in the $125,505 and $125,559 price areas until it hit its current ATH record in the $126,000 price range, yesterday. Now, according to CoinMarketCap analytics, the price of Bitcoin is trading in the $121,000 price range.
When Bitcoin Breaks Above $125,000 Again
Since the price of BTC went on to see a sharp decline in prices, the last time the price of Bitcoin hit its latest ATH, seasoned analysts are predicting that many traders will now try to short BTC again to make a profit. The posts above mention that over $2.5 billion in short liquidations could be triggered if Bitcoin breaks above $125,000. Another notices how BTC is having its first dip since the $108,000 to $125,000 rally, leading to many declaring the top is already in again.
However, based on the analyst’s take in the post above, the 4th squiggle, as depicted in the image, notices how a similar price action to what we played out in July may be unfolding now, with a consolidation above the range bringing max pain. The analyst also mentions that too many traders will try to short this. Meanwhile, the analyst from the previous post expects BTC to set a local bottom soon at the $119,000 price range and then hit a new ATH at the $130,000 price in October.
