Bitcoin Price Faces Threat As Analyst Foresees $55 Million Liquidation

Must read

OpenAI’s Sam Altman seeking $7 trillion to solve the global chip shortage issue – WSJ

Tech entrepreneur Sam Altman is reportedly looking to raise between $5 trillion and $7 trillion to help fund the production of microchips to increase...

NYAG raises DCG, Genesis lawsuit to $3B amid conflicting settlement reports

The New York Attorney General’s Office (NYAG) raised its fraud claims against Digital Currency Group (DCG) and related parties on Feb. 9.The NYAG’s lawsuit...

Solana outage was caused by infinite loop bug previously seen on devnet

Solana Labs said that the recent outage that halted blockchain transactions for five hours on Feb. 6 was caused by a bug developers caught...

Hong Kong authorities issue public alert about fraudulent crypto exchange masquerading as MEXC Global

Hong Kong’s Securities and Futures Commission (SFC) and local law enforcement have jointly issued a public warning against an entity masquerading as crypto exchange...

According to data from CoinMarketCap, Bitcoin (BTC) has maintained its upward price trajectory over the last day, gaining by 4.04% to briefly trade above the $48,000 mark. As BTC now hovers around the $47,100 price zone, investors and market experts remain highly speculative about the token’s next action. On that note, popular analyst Ali Martinez has called a major prediction that could spell weighty losses for many investors. 

Liquidity Hunters Target $45,810 In Potential Bitcoin Price Manipulation Plot 

In an X post on Friday, Martinez predicted an incoming dip in Bitcoin’s price driven by a planned liquidation. Using data from the cryptocurrency futures trading platform, CoinGlass, the analyst stated the Bitcoin liquidation heatmap indicated that there is potential strategic liquidation in play.

According to the #Bitcoin liquidation heatmap, there’s a potential strategy unfolding where liquidity hunters could drive the price of $BTC down to $45,810. This move is aimed at triggering liquidations amounting to $54.73 million! pic.twitter.com/monFlZmvQ6

— Ali (@ali_charts) February 9, 2024

Martinez stated that liquidity hunters in the BTC market could be looking to push the token’s price as low as $45,810 for personal benefits. For context, liquidity hunters are traders or investors who actively seek opportunities in the financial markets to exploit changes in liquidity. 

This set of market players often targets specific price levels where there is a concentration of stop-loss orders or where market liquidity is expected to be thin. By triggering liquidations or capitalizing on price movements, liquidity hunters aim to profit from short-term market inefficiencies. 

According to Martinez, the liquidity hunters in the BTC market are currently looking to induce an estimated 3% decline in the token’s price. While this change may seem minimal, it represents an astounding $54.73 million in liquidations. Based on these numbers, BTC traders and investors should be wary of potentially significant losses in the coming days. 

BTC Price Overview 

The premier cryptocurrency has recently taken flight, gaining by 8.6% in the last two days after a flat period of consolidation stretching to the beginning of February. Interestingly, the asset’s pathway to higher gains appears more confident with recent developments in the Bitcoin spot ETF market, which recorded a total net flow of $403 million on February 8 – the highest value of that metric since January 17. 

At the time of writing, Bitcoin trades at $47,238, with a 0.26% gain in the last hour. Meanwhile, the coin’s daily trading volume has soared by 56.33% and is now valued at $39.42 billion. In addition, BTC maintains its top spot in the crypto market with a total market cap of $924.67 billion. 

BitcoinBTC trading at $47,229 on the daily chart | Source: BTCUSDT chart on Tradingview.com    

Featured image from Nairametrics, chart from TradingView

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

More articles

Latest article

OpenAI’s Sam Altman seeking $7 trillion to solve the global chip shortage issue – WSJ

Tech entrepreneur Sam Altman is reportedly looking to raise between $5 trillion and $7 trillion to help fund the production of microchips to increase...

NYAG raises DCG, Genesis lawsuit to $3B amid conflicting settlement reports

The New York Attorney General’s Office (NYAG) raised its fraud claims against Digital Currency Group (DCG) and related parties on Feb. 9.The NYAG’s lawsuit...

Solana outage was caused by infinite loop bug previously seen on devnet

Solana Labs said that the recent outage that halted blockchain transactions for five hours on Feb. 6 was caused by a bug developers caught...

Hong Kong authorities issue public alert about fraudulent crypto exchange masquerading as MEXC Global

Hong Kong’s Securities and Futures Commission (SFC) and local law enforcement have jointly issued a public warning against an entity masquerading as crypto exchange...

Over 92% of Bitcoin supply now profitable as price soars past $47,000

What is CryptoSlate Alpha?A web3 membership designed to empower you with cutting-edge insights and knowledge. Learn more ›Connect via Access ProtocolAccess Protocol is a...