Bitcoin has been on an upward price trajectory over the last day, gaining 4.04% to trade below the $48,000 mark. It settled around the $47,100 price zone as investors and market experts remain highly speculative about the premier cryptocurrency’s next move.
On that note, popular analyst Ali Martinez has made a major prediction regarding an upcoming dip in Bitcoin’s price. The planned liquidation could drive this and spell weighty losses for many investors bullish on the token.
Furthermore, Martinez analyzed data from CoinGlass, a cryptocurrency futures trading platform, and forecasted that certain traders, known as liquidity hunters, aim to drive down Bitcoin’s price to $45,810 strategically.
These liquidity hunters actively seek opportunities in financial markets to exploit by triggering changes in liquidity. They focus on specific price levels where stop-loss orders concentrate or market liquidity thins. They profit from short-term inefficiencies by causing liquidations or capitalizing on sudden price shifts.
Bitcoin Liquidity Hunters Target 3% Drop
According to Martinez’s analysis, the liquidity hunters in the Bitcoin market are currently looking to induce an estimated 3% decline in the token’s price. This seemingly minimal percentage represents a massive $54.73 million in liquidations. Bitcoin traders and investors should be very wary about the prospect of potentially significant losses in the coming days if these predictions come to fruition.
Recently, the premier cryptocurrency has experienced a bullish run, gaining 8.6% over the last two days after a prolonged period of flat consolidation stretching back to the beginning of Feb.
Bitcoin’s pathway to higher gains appears more confident in light of recent positive developments in the Bitcoin spot ETF market. The market recorded its highest single-day net flow of $403 million on February 8th since January 17th.
Currently, Bitcoin is $47,355.73, with a 24-hour trading volume of $35,650,645,006. Bitcoin is up 2.50% in the last 24 hours. It has a circulating supply of 19,623,618 BTC coins and a max supply of 21,000,000 BTC coins.
Source CoinMarketCap
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Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.
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