Bitcoin Bears Face $600M Liquidation Risk, Rally to $70K
Bitcoin (BTC) is showing signs of a potential bullish reversal as a modest price increase to $69,600 could trigger $600 million in short liquidations, that potentially paves the way for a rally towards $70,000.
Currently trading near $68,267 (approximately PKR 19.0–19.2 million), BTC has been fluctuating between $65,900 and $70,500 over the past week.
Analysts highlight that this price movement could force a significant wave of liquidations among bearish futures positions, which currently dominate the market. The $600 million liquidation risk far exceeds the $385 million liquidated during the February 6 rally when BTC surged from $60,200 to $70,560.
This suggests that excessive bearish confidence might rapidly shift momentum back to the bulls if resistance levels are breached.
Market data shows that funding rates remain negative, indicating that short traders are in control. However, this also sets the stage for a sharp short squeeze if Bitcoin manages to climb above key resistance levels.
Experts note that Bitcoin’s risk-reward profile is becoming increasingly attractive to macro traders, especially as it trades 47% below its all-time high.
Several factors support this optimistic outlook. The seven-day average Bitcoin network hashrate has rebounded to 1,100 exahashes per second, demonstrating resilience amid concerns that miners might divert resources to AI mining.
Additionally, the Bitcoin Improvement Proposal 360 (BIP-360) introduces post-quantum security measures through a backward-compatible soft fork, which hides public keys on-chain until spending occurs. This technological upgrade reduces long-term technical risks and boosts confidence among bullish investors.
Broader economic conditions also contribute to Bitcoin’s appeal. US economic data reveals slowing GDP growth and persistent inflation, which have weakened traditional market confidence.
Rising geopolitical tensions and a strong rally in gold prices (+25% over three months) are driving investors to explore alternative assets like Bitcoin.
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If Bitcoin successfully clears the $69,600 to $70,000 resistance zone, it could trigger a cascade of forced short liquidations, accelerating a rally that may push prices beyond $70,000 in Pakistani Rupee terms.
Short-term support is identified around $66,000, with extended macroeconomic and technical factors favoring a bullish reversal if market conditions align.
Bitcoin’s current technical and fundamental indicators suggest a growing likelihood of a significant upward movement. The combination of network health improvements, advanced security proposals, and shifting market dynamics could enable bulls to regain control and drive BTC towards new highs.