The frequency with which Bitcoin (BTC) hits higher support price levels and the “lack of immediate froth” in derivatives markets could see its price return to $50,000 soon, according to one cryptocurrency analyst. This suggests that the gender is low.
Dylan LeClair, senior analyst at digital asset fund UTXO Management, explained among the analysts. Note It was announced on April 7th that if Bitcoin returns to the $70,000 to $75,000 price range, there will be significant pressure on short positions.
“As we consolidate, we’re seeing short-term liquidations increase from 70,000 to 75,000,” he said.
According to CoinGlass, approximately $174.17 million would be liquidated if the price of Bitcoin rose to $70,000. data.
If LeClair reaches the upper end of its range at $75,000, approximately $271.92 million worth of short positions will be liquidated.
LeClair said that a fall in Bitcoin prices to $50,000 (equivalent to a 27% decline) could trigger a significant liquidation of long positions, but given recent price movements and rising support levels. He explained that he had not foreseen that.
“There is a large cluster of longs that can trade at ~50,000, but given the higher low structure and lack of immediate froth in the current derivatives market, the likelihood of revisiting that level is quite low,” he said. I think so.”
“Of course it’s not impossible,” he cautioned. The last time Bitcoin’s price fell below $50,000 was on February 13th, when it hit $49,725.
The previous day, on February 12th, it reached $50,000, but this level was last reached in December 2021 for the first time in two years.
He cited recent moves by global asset management firm BlackRock to update its Bitcoin exchange-traded fund (ETF) prospectus on April 5, adding five major Wall Street firms as new authorized participants. He cited this to support his claim.
New members include ABN AMRO Clearing, Citadel Securities, Citigroup Global Markets, Goldman Sachs and UBS Securities
Related: According to historical data, the price target for Bitcoin’s halving in 2028 is $435,000.
Prominent crypto traders are speculating about the price of Bitcoin ahead of its halving event, scheduled for April 20, just 13 days away. This event will be held every four years and will reduce the miner block reward by 50% from 6.25 BTC to 3.125 BTC.
Cointelegraph recently reported that the price of Bitcoin has increased by approximately 658% since the last Bitcoin halving in 2020. If historical chart patterns repeat, and the current cycle continues, Bitcoin’s price will reach $434,280 per coin by the halving in 2028.
Cryptocurrency trader Recto Capital believes there is considerable potential for further gains in the short term. In an April 7 post, he told his 443,000 followers that the market is about a third of the time in a “bull market” phase.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
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