- $244 million worth of Bitcoin will be liquidated in the new short sale at $61,000, and $9.17 billion worth of Bitcoin will be liquidated at $68,000.
- However, the achieved price, high whale ratio, and new record high in money supply suggest buying BTC.
Bitcoin [BTC] The market is currently uncertain, struggling to maintain a clear upward trajectory after recovering from the August 5th decline, caused by the collapse of Japanese stocks.
At the time of writing, Bitcoin is still just below the $60,000 level, but challenges remain. A pool of 4,000 new short positions are waiting, with immediate sell orders just above $61,000.
So, Bitcoin may break $60K overnight, but it will stop at $61K. That was the downside as highly leveraged long liquidations were looming at $58K.
Additionally, $9.17 billion in Bitcoin short sales could be liquidated if Bitcoin hits $68,000, which also threatens its ability to reach new highs.
However, other data supports Bitcoin’s continued recovery, with it likely to hit a new record high by Q4 2024 or Q1 2025.
Bitcoin: A Future Buying Opportunity?
Bitcoin recently fell below the 200-day simple moving average but saw a double bottom, a key indicator of a continuation of long-term trends.
In a bull market, this decline could represent a buying opportunity, indicating a potential recovery.
However, if the Bitcoin price remains below the 200-day simple moving average for an extended period of time, it may indicate the beginning of a bear market.
Despite this risk, analysts believe that Bitcoin is unlikely to enter a long-term bearish phase at this point.
The current situation indicates a temporary decline and not the beginning of a downward phase, with a strong possibility of recovery and continued growth.
Whales pile in as global liquidity rises
Bitcoin whales are also increasing their holdings, indicating a potential price spike. Analysts point out that large investors and traders buy during periods of low prices, a pattern that often leads to higher prices.
This trend, coupled with recent halving events and increased institutional interest through Bitcoin ETFs, suggests that Bitcoin prices could soon rise.
Is Your Investment Portfolio Green? Check Out Our Bitcoin Profit Calculator
The global money supply has also reached an all-time high, boosting purchasing power and likely driving up the price of Bitcoin.
As more money circulates, buying pressure increases, making Bitcoin a strong long-term investment. The continued increase in the money supply supports Bitcoin’s potential for future gains.
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