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According to data from CoinMarketCap, Bitcoin (BTC) maintained its upward price trajectory over the past day, gaining 4.04% to briefly trade above the $48,000 mark. With BTC now hovering around the $47,100 price zone, investors and market experts remain highly speculative about the token's next move. On this topic, popular analyst Ali Martinez mentioned a major prediction that could lead to heavy losses for many investors.
Liquidity Hunters Target $45,810 in Potential Bitcoin Price Manipulation Plot
In a X post Friday, Martinez predicted an imminent drop in the price of Bitcoin due to a planned liquidation. Using data from cryptocurrency futures trading platform CoinGlass, the analyst said Bitcoin's liquidation heat map indicated a potential strategic liquidation was in play.
According to #Bitcoin On the liquidation heat map, a potential strategy is unfolding in which liquidity hunters could drive up the price of $BTC up to $45,810. This move aims to trigger liquidations amounting to $54.73 million! pic.twitter.com/monFlZmvQ6
– Ali (@ali_charts) February 9, 2024
Martinez said liquidity hunters in the BTC market could seek to drive the token's price down as low as $45,810 for personal gains. As a reminder, liquidity hunters are traders or investors who actively seek opportunities in financial markets to exploit liquidity changes.
This collection of market participants often targets specific price levels where there is a concentration of stop-loss orders or where market liquidity is expected to be low. By triggering liquidations or capitalizing on price movements, liquidity hunters aim to take advantage of short-term market inefficiencies.
According to Martinez, liquidity hunters in the BTC market are currently looking to cause an estimated 3% drop in the price of the token. While this change may seem small, it represents a staggering $54.73 million in liquidations. Based on these numbers, BTC traders and investors should be wary of potentially significant losses in the coming days.
BTC Price Overview
The leading cryptocurrency has recently taken off, gaining 8.6% over the past two days after a flat consolidation period extending into early February. Interestingly, the asset's path to higher gains appears more confident with recent developments in the Bitcoin spot ETF market, which saw a total net flow of $403 million on February 8 – the highest value of this measure since January 17.
At the time of writing, Bitcoin is trading at $47,238, with a gain of 0.26% over the past hour. Meanwhile, the coin’s daily trading volume soared by 56.33% and is now valued at $39.42 billion. Additionally, BTC maintains its top spot in the crypto market with a total market capitalization of $924.67 billion.
BTC trading at $47,229 on the daily chart | Source: BTCUSDT chart on Tradingview.com
Featured image from Nairametrics, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the views of NewsBTC on whether to buy, sell or hold investments and, naturally, investing involves risks. You are advised to carry out your own research before making any investment decision. Use the information provided on this website entirely at your own risk.
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