Bitcoin’s move to $70k: $1.84B at risk as short sellers watch BTC closely

• $1.84 billion in Bitcoin short positions at risk if it hits $70,000.
• Recent bullish signals suggest a potential surge, despite ongoing market corrections.

Amid the turbulence of the crypto markets, Bitcoin’s [BTC]  resilience is being tested as it battles to reclaim the $70,000 threshold, a price point teeming with potential liquidations.

Short sellers, laden with bearish bets, are closely monitoring every market tick, with significant financial stakes hanging in the balance.

Bitcoin nears key thresholds

Bitcoin was trading at $65,802 at press time, reflecting a slight uptick of 0.7% over the last 24 hours, yet it still records a nearly 7% drop over the past week.

The crypto market’s current state shows a robust battle between hope and caution.

This sentiment is primarily fueled by the extensive amount of short positions totaling $1.84 billion, which faces the threat of liquidation, according to data from Coinglass, should Bitcoin surge back to $70,000—a level unseen since early June.

Source: Coinglass

The possibility of Bitcoin reaching this pivotal price has been a topic of considerable discussion.

Joshua Jake, CEO of Discover Crypto, shared his insights on X (formerly Twitter), stating,

“Markets are incredibly bullish right now. Bitcoin and ETH Liquidations are stacked. Bounce imminent.”

This sentiment was echoed by prominent crypto analyst Willy Woo, who suggested on the same platform that a substantial wave of liquidations might be necessary to clear the path for a bullish resurgence.

Source: Willy Woo on X

Analyzing BTC’s fundamentals

Delving into Bitcoin’s fundamentals, the MVRV ratio—a metric that compares the market value to realized value—has recently declined alongside the price, currently standing at 2.12, according to data from CryptoQuant.

This figure suggests that Bitcoin might still be undervalued, offering a potentially lucrative entry point for investors who believe in the currency’s long-term viability.

Source: CryptoQuant

Additionally, there has been a notable increase in Bitcoin transactions exceeding $100k, which rose from below 10,000 to 13,000 transactions over the past week.

This surge in large transactions is often viewed as a sign of heightened activity and interest from substantial investors or institutions.

Source: IntoTheBlock

Complementing the transactional data, exchange outflow metrics from CryptoQuant have also indicated increased activity.

Specifically, Bitcoin outflows from exchanges spiked to over 33,000 BTC on 17th June, a significant rise from figures recorded just days prior.

Source: CryptoQuant

Read Bitcoin’s [BTC] Price Prediction 2024-25

Such outflows can often signal accumulating behavior by investors, suggesting a possible preparation for a price increase as coins move from exchanges to private wallets for long-term holding.

Despite these potentially bullish indicators, there remains a cautionary note from AMBCrypto, which reported a key Bitcoin metric signaling a potential further correction that could depress prices to as low as $54,000.