Bitcoin worth $244M to be liquidated at $61K: What happens after this?

• $244M Bitcoin in new shorts will be liquidated at $61K, and $9.17B Bitcoin at $68K.
• Still, the realized price, high whale ratio, and new ATH in money supply suggest buying BTC.

The Bitcoin [BTC] market is currently uncertain, struggling to maintain a clear upward trajectory after recovering from the downturn on the 5th of August, caused by Japan stocks crash.

As of time of press, BTC remained just under the $60K level, but challenges remained. A cluster of 4,000 new shorts lie in wait, with spot sell orders just above $61K. 

So, BTC could break the $60K price level overnight, but stall at $61K. This was the downside as high-leverage long liquidations loomed around the $58K price mark. 

Source: Coinglass

Additionally, $9.17 billion in Bitcoin shorts could be liquidated if BTC reaches $68K, which also threatens its ability to reach new highs. 

However, other data supports BTC’s continued recovery, potentially reaching a new ATH by Q4 2024 or Q1 2025.

Bitcoin: Buying opportunity ahead?

Bitcoin recently dropped below the 200-day Simple Moving Average but has double bottomed, a key indicator for long-term trends continuation.

In a bull market, this dip can present a buying opportunity, suggesting a potential rebound. 

However, if Bitcoin’s price remains below the 200-day SMA for an extended period of time, it could signal the beginning of a bear market. 

Source: Glassnode

Despite this risk, analysts believe that Bitcoin is unlikely to enter a prolonged downturn at this stage. 

The current situation suggests a temporary dip rather than the start of a bearish phase, with a strong possibility for recovery and continued growth.

Whale accumulate as global liquidity surges 

Bitcoin whales are also increasing their holdings, indicating a potential price rise. Analysts note that large investors and traders are buying during the price dips, a pattern that often leads to price spikes. 

This trend, coupled with recent halving events and growing institutional interest through Bitcoin ETFs, suggests that Bitcoin’s prices may rise soon.

Source: CryptoQuant

Is your portfolio green? Check out the BTC Profit Calculator

The global money supply has also reached a new all-time high, boosting buying power and likely increasing Bitcoin’s price. 

With more money in circulation, buying pressure rises, making Bitcoin a strong long-term investment. The continuous increase in money supply supports Bitcoin’s potential for future gains.

Source: Jamie Coutts, CMT