After Bitcoin surpassed $42,000 on Monday, the world’s largest digital asset by market capitalization surpassed $43,000 on Tuesday for the first time in more than a year. As a result, a significant number of leveraged positions were liquidated.
+5.14%
He added that there are currently highly leveraged positions that could disappear if markets become more volatile. “Now, there is a possibility that both short-term squeezes and buying liquidations will increase market volatility at the same time,” added researcher Yang.
Bitcoin’s ‘bullish catapult’
Analysts at Bitfinex pointed out two BTC price levels that have seen a significant amount of liquidation given recent market volatility. “Right now we could see a large short-term liquidation at $41,950 and then towards $42,200,” Bitfinex analysts told The Block.
Analysts said that above these levels, the Bitcoin price could experience a “bullish catapult” due to forced liquidation as sellers are forced to close trades.
Bitcoin rose 4.3% on Tuesday, trading at $43,321 at 12:27 PM ET.
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