$75k is the Next Target, Bitcoin Dips Under $55k as $2.3 Bln Gets REKT
While “there is no top,” degen traders continue to pull Bitcoin price down time and again with their high leverage trading. 195,305 traders have been liquidated in the past 24 hours.
This weekend was yet another all-time high for Bitcoin price, which nearly hit $62,000. But the new week has opened on a red note as the price of the digital asset dropped about 12% to $54,500.
As of writing, we are trading around $56k.
According to trader and economist Alex Kruger, this latest momentum could see us going near $80k. He said,
“BTC has traded two consecutive measured moves since November. On each move price corrected halfway before continuing higher. The 161% Fibonacci extension of the current move lies at 77K.”
As for where would be the top of this cycle, “there is no top,” as per the trader who added, “traders that move sizes use options strikes, Fibonacci levels, and funding rates to take profit.”
According to him, the latest leg up was mostly driven by large traders and leverage and not stimulus checks of $1,400, which started flowing into the American’s accounts just this weekend.
This can be seen in the record open interest in bitcoin futures and the funding rate, which, as we reported on Saturday during the move, went as high as 0.5%. Today, the funding rate on Bitcoin perpetual contracts is keeping between 0.0808% and 0.01% for now, as per Viewbase. OKEx is the only one with negative funding at 0.0490%, meaning here, shorts are paying the longs.
Highly leveraged longs obviously resulted in the liquidation, which pushed the price down. In the past 24 hours, 195,305 traders have been liquidated for $2.3 billion, as per Bybt.
Much like always, Binance degens lead these liquidations by accounting for about half of them at $932 million. For a reminder, more than 60% of its traders were using 20x or higher leverage in the first two months of the launch of Binance Futures, and 21% of traders a staggering 125x leverage.
While the bitcoin price is currently seeing a bit red, there is a “solid validation” for $60k already.
“The coins moving into investor wallets at this price level is already quite huge given the short number of hours we've had so far,” noted on-chain analyst Willy Woo.
As for a healthy correction, the analyst thinks we are due for one in April only to add it “might be smaller than people think though. $1T support is pretty strong.”
Going forward, the market expects the crypto asset to rally toward $75,000 “very quickly.” Bloomberg Intelligence strategist Mike McGlone meanwhile sees $100,000 as of the next threshold.
Richard Byworth, chief executive officer of Diginex Ltd., a Nasdaq-listed digital asset financial services company, is also predicting $175,000 per BTC by the end of this year.
Massive monetary stimulus against the devaluation of the dollar is having a push effect onto Bitcoin, which is already having a supply-side crisis due to the halving that we saw last May, he said.
Also, we are starting to see “corporate adoption institutional adoption to a degree that is so extreme.” Byworth explained how just four companies MicroStrategy, Tesla, Square, and Meitu, have bought 40% of the annual supply of Bitcoin in just a few months, “so we really have a supply-side crisis in Bitcoin.”