Bitcoin Price Surge $115K, $1.58B in Shorts Face Liquidation

Bitcoin Surge to $115K Could Trigger $1.58B in Short Liquidations

Bitcoin price is currently riding high, and according to recent data, the cryptocurrency market could face a significant event if the price surges to $115,000. Such a situation would liquidate a huge short position worth of $1.58 billion, which would trigger a sudden change of market sentiment.

$1.58 Billion in Shorts Under Threat if Bitcoin Price Hits $115K

Binance's BTC/USDT perpetual markets is an example of a liquidation map, which shows the current leverage (smaller numbers are short positions, and larger numbers are long positions). 

The data shows that the cumulative short liquidation leverage has an impressive value of $1.58 billion, while the positions under significant liquidation stress are at 25x and 50x leverage.

With the current price of BTC hovering around $110k, the chart shows an increase in the likelihood of liquidation as the $115,000 threshold nears. If Bitcoin breaks this level, we may see a flood of short liquidations result in a major market volatility increase with large swings.

Traders with short leveraged positions would be exposed to enormous losses if the price were to continue to rise, and the amount of leverage would amplify the effect. By now the message should be clear: for leveraged positions, the $115,000 level for Bitcoin is a crucial one.

Bitcoin's Momentum Shifts into a Neutral-Bearish Territory

The Bitcoin price is currently stuck in a narrow price range. Support is found around $108,600 while resistance is found around $111,000 to $112,000. This lack of price movement is a sign that the cryptocurrency is going through a difficult time.

CryptoQuant's 30-day momentum index has recently dipped below zero, indicating a possible change in market sentiment. This decline indicates that strength at purchase is diminishing, which adds to the danger of a downside move for BTC.

The markets is now poised for major volatility, and traders and investors are paying close attention. The momentum is weakening and might signal a correction as the market sentiment turns from bullish to neutral-bearish.

BTC Confirms Bullish Breakout from Descending Broadening Wedge

Crypto analyst Captain has confirmed that the BTC price has officially broken out of the Descending Broadening Wedge pattern. This analysis comes with a chart of the formation showing the price action of Bitcoin breaking to the upside after consolidating in a downward-sloping channel.

Source: Tweet

The Ascending Broadening Wedge is a chart pattern in which the price fluctuates between two trendlines that are approaching each other. In the case of Bitcoin, the pattern has been in the making for some time. As per the analysis, BTC price has now managed to break the upper trendline, indicating a possible bullish breakout.

Is BTC Price Ready for a Breakout Above $115k?

As of the reporting time, the BTC price was $112,160, showing a modest increase of 2.36%. The price has been trading in a tight band, with the closest resistance at $113,000.

The present RSI (Relative Strength Index) is 62. This indicates that the market has not been overbought and more gains are possible.

Source: Tradingview

The MACD (Moving Average Convergence Divergence) histogram has green bars, which indicate bullish momentum. The MACD line has also crossed above the signal line, giving a strong indication of positive market sentiment.

Should the price continue its upward movement, it could aim for the next resistance level at $114,000, with $115,000 also in sight. Failure to go above $110,000 could lead to a bearish reversal.