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In a volatile turn of events on the cryptocurrency market, Bitcoin (BTC) shorts have skyrocketed to an astounding $3.1 billion, prompting a warning from prominent crypto analyst Crypto Rover. The expert took to Twitter to share a series of tweets forecasting a potential wave of liquidations if Bitcoin surpasses the $38,500 mark.
Crypto Rover's initial tweet sounded the alarm, stating that if Bitcoin hits $38,500, over $430,000,000 in shorts will be liquidated. This sparked concerns among traders and investors, hinting at the possibility of significant market movements.
Shortly after, Crypto Rover provided an update, indicating a continuous influx of shorts onto the market. In his second tweet, he explained that more and more Bitcoin shorts are flowing onto the market.
While highlighting that there are $3.1 billion in Bitcoin shorts looming at $38,500-$38,700, the analyst predicted that another short squeeze is coming. The term "short squeeze" refers to a situation where short sellers are forced to buy back their positions to cover losses, leading to a surge in the asset's price.
Bitcoin approaching critical level
Underscoring the urgency of the situation, Crypto Rover shared another tweet, exclaiming, "Bitcoin is breaking!!!!! $39,700 is the next resistance!!" This statement suggests that the cryptocurrency is approaching a critical resistance level, and the potential for heightened market volatility is imminent.
As of the latest available data, the current price of Bitcoin stands at $38,242, reflecting a 3.14% increase in the last 24 hours and a notable 11.64% surge over the past 30 days. The $38,500 threshold highlighted by Crypto Rover now looms large as a crucial point of interest for market participants.
If Bitcoin breaches this level, it could trigger a cascade of liquidations, potentially reshaping the cryptocurrency landscape in the short term. In the end, analysts and traders alike will be closely watching to see whether Bitcoin can overcome the $38,500 resistance or if a significant correction is on the horizon.