Bitcoin’s Rally To $75K Or Crash Below $72K Could Trigger $1B Liquidation Wave

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Key points:
Data from CoinGlass indicates more than $1 billion in leveraged positions could be liquidated if Bitcoin breaks above $75,100 or falls below $72,100.
A move above $75,100 could force short sellers to close positions, potentially adding buying pressure.
A drop below $72,100 could trigger liquidations of long positions, which may accelerate selling.
Bitcoin (BTC) tested resistance near $74,000 in midday trading Monday, with liquidation data showing more than $1 billion in positions could be wiped out if the price breaks above $75,100 or falls below $72,100.

Bitcoin’s price rose 2.5% in the last 24 hours to $73,300, paring gains after going as high as $74,300 in intraday trade, according to CoinGecko data. On Stocktwits, retail sentiment around the apex cryptocurrency rose to ‘bullish’ from ‘neutral’ territory over the past day.

Bitcoin’s latest rally comes after U.S. equities recovered as oil prices remained below the $100 mark. It remains nearly 40% below its record high of over $126,000 seen in October, but has recovered nearly 17% from its February bottom of $60,000.

Where Is Bitcoin’s Price Headed Next?

Bitcoin’s price has been range-bound for most of February and March so far. Data on CoinGlass showed that a breakout in either direction could trigger a chain reaction of liquidations.

A breakout beyond the $75,000 range could open the door for further upside if short liquidations add buying pressure. On the downside, a drop toward the $72,000 area could test the resilience of recent gains if leveraged long positions begin to unwind.

source: https://www.tradingview.com/news/stocktwits:ca2c7b0e6094b:0/