Bitcoin (BTC), the world’s oldest and largest cryptocurrency, has been undergoing a massive price correction recently. The bearish turn came shortly after the 11 Spot Bitcoin ETFs went live. Initially, the BTC price propelled up to $49,000, however, it eventually plummeted below the $43,000 level.

In the midst of uncertainties around Bitcoin’s price, a crypto analyst expects a further decline. In addition, he warned against a major liquidation of long positions that would take place after the BTC price falls below $42,000.

Massive Bitcoin Long Liquidation Is Impending

Crypto Rover, a renowned crypto analyst on social media, took to X and shared a snapshot of the Bitcoin Liquidation Heatmap. In addition, he noted that long positions worth $250 million would be liquidated after Bitcoin price drops to $41,900. The major selloff could push the crypto’s value even lower.

Earlier, Kripto Kurdu Global, an analyst on X, predicted a higher liquidation level. When Bitcoin was trading between $46,000 to $49,000 after ETF approval, the analyst stated that if Bitcoin retreated to $42,967, a whopping $3.14 billion long liquidation would be recorded.

The price is already lower than the target he mentioned. However, only $59 million worth of long positions were liquidated in the last 24 hours, according to data from Coinglass. Moreover, the prediction was unprecedentedly high while Crypto Rover’s anticipation seems reasonable since a humongous $900 million liquidation was recorded ahead of the Spot Bitcoin ETF approval.

In his latest YouTube video, Crypto Rover also noted that he is selling a significant share of his Bitcoin holdings currently. He added that he would invest the funds into Ethereum (ETH) as he believes it has a better upside than Bitcoin. The analyst explained his stance citing that seven Spot Ethereum ETFs are expected to go live in four months alongside a major Ethereum upgrade.

Also Read: Grayscale Moves 9000 Bitcoin (BTC), Is a Selloff in View?

Bitcoin Price To Drop Below $40K?

Bitcoin is trading around $42,600, succumbing to several red sessions after the ETF approval, and holds a market cap of $835.68 billion. As of writing, the Bitcoin price was $42,605.27, down by 0.84% on Wednesday, January 17. However, BTC’s trade volume spiked by 17.76% to $24.67 billion.

On the other hand, in a recent video, Crypto Rover hinted at a Bitcoin price correction below the $40,000 mark. The crypto analyst stated that his buy zone for BTC is around $38,700, indicating a decline of nearly 10% from the current price. Whilst, he noted that before the correction, BTC could hit $44,500.

Also Read: Crypto Analyst Sells Bitcoin For Ethereum Amid ETF Anticipation

The post Bitcoin (BTC) Price Drop Risks $250 Mln Long Liquidation appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am