Bitcoin (BTC) maintained its upward price trajectory over the previous day, rising 4.04% and trading above the $48,000 mark at one point, according to data from CoinMarketCap. With BTC currently hovering around the $47,100 price range, investors and market experts remain highly speculative about the token’s next move. In this regard, popular analyst Ali Martinez has made a significant prediction that could lead to significant losses for many investors.
Liquidity Hunters Target $45,810 in Possible Bitcoin Price Manipulation
In a Friday post on X, Martinez predicted that the planned liquidation would cause Bitcoin prices to fall. The analyst, using data from crypto futures trading platform Coinglass, said the Bitcoin liquidation heatmap indicates a potential strategic liquidation is underway.
by #bitcoin The Liquidation Heatmap lays out potential strategies that liquidity hunters can use to guide prices. $BTC It drops to $45,810. The move is intended to trigger liquidations worth $54.73 million. pic.twitter.com/monFlZmvQ6
— Ali (@ali_charts) February 9, 2024
Martinez said liquidity hunters in the BTC market may be trying to drive the price of the token down to $45,810 for personal gain. A liquidity hunter is a trader or investor who actively seeks opportunities to take advantage of changes in liquidity in financial markets.
This set of market participants often targets specific price levels when stop-loss orders are concentrated or when market liquidity is expected to be thin. Liquidity hunters aim to profit from short-term inefficiencies in the market by causing liquidations or taking advantage of price movements.
According to Martinez, liquidity hunters in the BTC market are currently trying to reduce the price of the token by an estimated 3%. While this change may seem minimal, it represents a staggering $54.73 million in liquidations. Based on these numbers, BTC traders and investors should be aware that significant losses are possible in the coming days.
BTC price overview
The leading cryptocurrency has been surging recently, gaining 8.6% over the past two days after a period of sideways price movement that lasted until early February. Interestingly, recent developments in the Bitcoin Spot ETF market make the asset’s path to further gains seem more confident, with the asset posting total net flows of $403 million on February 8th. This is the highest value for this index since January 17th.
At the time of writing, Bitcoin was trading at $47,238, up 0.26% in the past hour. Meanwhile, the daily trading volume of the coin surged by 56.33% and is now worth $39.42 billion. Additionally, BTC maintains the top spot in the cryptocurrency market with a market capitalization of $924.67 billion.
BTC trading at $47,229 on the daily chart | Source: BTCUSDT chart on Tradingview.com
Featured images are from Nairametrics, charts are from TradingView