Ash Crypto cryptocurrency analyst alerted the crypto community that $33.14 billion would be at risk if Bitcoin’s price reaches $72,462. This refers to compact positions which could be liquidated if the flagship cryptocurrency reaches this target price, which will benefit BTC.

Nearly $33.14 billion will be wiped out if Bitcoin’s price reaches $72,462

Ash Crypto mentioned a liquidation warning in a post on X, revealing that $33.14 billion worth of shorts will be liquidated if Bitcoin price reaches $72,462. These BTC bears are already at risk of liquidation, given that the flagship cryptocurrency is rapidly approaching the $70,000 price level. This could pave the way for an extended rally to the liquidation price and even beyond it.

Liquidation of these Bitcoin shorts could be bullish for the flagship cryptocurrency, leading to an extended rally to recent highs, especially at the current ATH of $73.00 as the price reaches $72,462. However, there is also a scenario where Bitcoin’s price could correct and surface over-leveraged long positions before continuing upwards.

For now, Bitcoin’s price undoubtedly boasts a bullish outlook, given the flagship cryptocurrency’s gains since the beginning of this week. BTC briefly topped $69,000 on October 18, adding to the optimism that the cryptocurrency could soon reach a recent ATH. Recently predicted by Standard Chartered that this will probably happen before the US elections scheduled for November 5.

While this remains to be seen, it is worth mentioning that demand for Bitcoin is growing again, which could fuel growth towards recent ATH. In particular, Spot Bitcoin ETFs, which fueled the rally to recent ATH earlier in the year, are actively accumulating again. SpotOnChain data shows that these Bitcoin ETFs saw net inflows of $2.13 billion this week. CzarnyRocknotably, it added $1.14 billion worth of BTC to its holdings.

Bear analyst warns cryptocurrency traders

Analyst Justin Bennettknown for bearish analysis, warned traders to be cautious when trading amid the recent surge in Bitcoin prices. He stated that things are not coming together and that being cautious during such times is the best way to survive. He added that for now he will not make bold predictions because the data are contradictory.

However, he suggested that market participants should not be excited about Bitcoin breaking out of its seven-month range. This followed his statement that the rally was mainly motivated by perpetrators and so on open interest returned to the peak seen at the end of July.

CrediBULL Crypto cryptocurrency analystwho has been a Bitcoin bear recently, also warned that Bitcoin’s price rally is being driven by the perpetual market. In recent Post Xnoted that open interest has officially surpassed where it was before BTC’s recent drop from $70,000 to $49,000.

Featured image created with Dall.E, chart from Tradingview.com