Bitcoin has dipped in the last 24 hours, pulling the rest of the market down. As of 09:42 UTC, Bitcoin was trading at $66,165, down by 4.82%. However, trading volumes are up by 66% to hit $42 billion in the last 24 hours, signifying a substantial increase in price activity in the last 24 hours.
Bitcoin’s price correction is nothing new when compared to its past cycles. Bitcoin struggled around its all-time high in past bull cycles before rocketing to new highs. This is usually driven by a lot of speculative activity around the last all-time highs, with some traders overleveraging longs expecting a sudden surge in the price and others overleveraging their short positions in expectations of a possible correction.
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$3 Billion In Short Positions At $74k
These dynamics are evident in Bitcoin’s current price action. Presently, there are many overleveraged longs at around $67k, many of which have been liquidated in the last 24 hours. However, most of the liquidity is in the massive short positions, around $74k.
#Bitcoin liquidation heatmap 🚨
There is huge $3.5b of Liquidity on $74k area.
Shorts liquidations soon…. pic.twitter.com/VGNQqMXBGn
— @TheLordofEntry (@thelordofentry) April 2, 2024
At this price level, there are shorts totaling around $3.4 billion. This is a bullish signal because it means Bitcoin has a lot of liquidity to feed into in a new wave of gains. It presents the chance for Bitcoin to easily push through the wall of short sellers to hit a high of $80k in the day.
Halving Is 17 Days Away
Besides, the many short sellers around $74k are presenting an opportunity for a spike in the price of Bitcoin, and the fundamentals make the case for a Bitcoin rally even stronger. One of them is the upcoming Bitcoin halving, which is now only 17 days away. As the Bitcoin halving draws closer, investors will also be interested in Bitcoin, and it’s for practical reasons. Bitcoin’s mined supply entering the market is set to drop by half, and that means going forward, demand will be chasing an increasingly tight supply of Bitcoin.
Demand From More Sources Than Past Bull Cycles
Unlike in past halving cycles, Bitcoin was only driven by retail money. This time, Bitcoin is mainly pushed by retail, institutional money, and governments. This means the demand for Bitcoin is much higher than ever before, yet the mined supply entering the market is set to shrink to some of the lowest levels since Bitcoin was created. The shrinking supply is evident in that most large Bitcoin holders are not selling, with up to 76% of Bitcoin’s total supply now illiquid.
Bitcoin is highly volatile at the moment, as it has been around in past halving periods. However, with shorts worth up to $3.4 billion, around $74k, Bitcoin has a high potential liquidity to give it a significant price push to a high of $80k or more soon.
Bitcoin Consolidating A Pointer To A Potential Breakout
Bitcoin is currently consolidating between $73,574.52 resistance and $61,893.04 support.
If Bitcoin bulls take control and push Bitcoin through the $73,574.52 resistance, then Bitcoin could easily liquidate over $3 billion in shorts around the $74k level. In such a scenario, Bitcoin could easily see a price spike to $80k.
On the other hand, if Bitcoin volumes drop in the day, the consolidation between $73,574.52 and $61,893.04 for the rest of the day, possibly until the halving.
However, if bears take control and push Bitcoin through the $61,893.04 support, then prices around $55k could come into focus in the short term.
Bitcoin Price Prediction – Why The Case For $80k Is Stronger
While any of the scenarios above could play out today, the odds are higher that Bitcoin could be headed to $80k. One key factor supporting such a price move is the high number of Bitcoin shorts, around $74K. This presents potentially high liquidity for Bitcoin to feed on and easily push to $80k or more in a few long candles.
Demand for Bitcoin, especially from institutional investors, continues to rise, especially when the halving is a little over two weeks away. As the halving draws closer, the odds are high that Bitcoin could see a spike in price due to an increase in FOMO buying.
Read More: Bitcoin Price Prediction 2024 -2040
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