If Bitcoin‘s price reaches $72,000, it could act as a catalyst for breaking through the $75,000 psychological barrier, according to analyst Willy Woo. Woo suggests that hitting this price point would spark a wave of mass liquidations, propelling Bitcoin to new all-time highs.
In a June 5 post on X, Woo stated, “Tapping $72k is the fuse set to start a liquidation cascade. $1.5 billion of short positions ready to be liquidated up to $75k and a new all-time high.”
BREAKING: (F*ck knows what “breaking” means but people click on it).
Tapping 72k is the fuse that’s set to start a liquation cascade. $1.5b of short positions ready to be liquidated all the way up to $75k and a new all time high. https://t.co/uYugscJkVF pic.twitter.com/23rspMcgLT
— Willy Woo (@woonomic) June 5, 2024
As of 8:05 am UTC on June 5, Bitcoin had risen 3.15% in 24 hours to trade at $71,124. Over the past week, Bitcoin has increased by 4.8%, according to CoinMarketCap data.
Resistance and Liquidations
Bitcoin faces significant resistance at the $71,500 and $72,000 levels. According to CoinGlass, a move above $72,000 could liquidate $800 million worth of leveraged short positions across all exchanges. Beyond the $72,500 mark, Bitcoin would trigger the liquidation of over $1.2 billion in leveraged shorts. Currently, Bitcoin is 3.4% below its previous all-time high of $73,740, achieved on March 14.
Post-Halving “Danger Zone” Ends
According to popular crypto analyst Rekt Capital, Bitcoin’s post-halving distribution “danger zone” ended on May 6 when the price rose above the reaccumulation range of $60,000. Since May 6, Bitcoin’s price has increased by over 12.5%, marking the end of this critical phase.
Breaking the Downtrend
BTC broke out of a significant two-week downtrend on June 3. Rekt Capital noted in a post on X, “Bitcoin broke its two-week downtrend today. However, we have seen upside wicks beyond this downtrend before. Which is why a Daily Close later today is needed to confirm this breakout.”
Despite this progress, Bitcoin still needs to turn the $72,000 resistance into support to enter the “parabolic phase” of the bull cycle, Rekt Capital added.
As Bitcoin edges closer to these critical price points, the market is watching closely for signs of a breakout that could lead to new all-time highs.
