The crypto market just clocked a 2% upswing, propelling Bitcoin back to the $38,000 realm. It’s been quite the rollercoaster as major cryptocurrencies hit their peak yearly values. But Bitcoin’s getting intense at the $38,250 resistance level seems unending—it keeps getting turned away at the door. Right now, it’s hanging around $38,100. Are you ready to give that resistance level another run, and what is the outcome? That’s anyone’s guess!
Interestingly, Bitcoin shorts have surged to an unprecedented $3.1 billion, prompting notable crypto analyst Crypto Rover to tweet caution. The expert raised a red flag, forewarning potential massive liquidations should Bitcoin breach the $38,500 mark.
Analyst’s Cautionary Take on This Tense Moment
Crypto Rover’s initial X post highlighted the potential fallout if Bitcoin hit $38,500, estimating liquidations of over $430 million in shorts. This revelation sent ripples through the trading community, igniting concerns about looming market movements. Looking at the current scenario, the analyst updated his followers on the mounting shorts flooding the market. In his series of X posts, he elaborated on the continuous influx of Bitcoin shorts introduced into the market.
At Midst of Short Position: $3.1 Billion in Sight?
With the current flow, analysts suggest that a staggering $3.1 billion worth of Bitcoin shorts hang precariously in the range of $38,500 to $38,700. This signaled a potential impending short squeeze, where short sellers might scramble to cover losses, spurring a surge in Bitcoin’s price. Echoing urgency, Crypto Rover highlighted, “Bitcoin is breaking!!!!! $39,700 is the next resistance!!” This statement hinted at the cryptocurrency edging toward a pivotal resistance level, indicating heightened market volatility ahead.
Wait For the Tipping Point
Bitcoin currently stands at $38,242, marking a 3.14% increase in 24 hours and an 11.64% rise over 30 days. The $38,500 threshold outlined by Crypto Rover now looms as a crucial pivot, poised to reshape the crypto landscape if breached potentially.
A breach of this level could cascade into a flurry of liquidations, fundamentally altering the crypto sphere in the near term. Analysts and traders remain on edge, eagerly anticipating whether Bitcoin will conquer the $38,500 resistance or prompt a significant market correction. The coming days hold immense anticipation and intrigue for crypto enthusiasts worldwide.
Source: https://coinpedia.org/price-analysis/bitcoin-shorts-surge-as-the-btc-price-inches-closer-to-the-38500-breaking-point/