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 presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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