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. 

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. 

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.

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.