What happens if Bitcoin breaks $75,300? Will short sellers face mass liquidations?

▲ Bitcoin (BTC) ©CoinReaders

A rosy outlook from an expert suggests that Bitcoin (BTC), which reclaimed $73,000 thanks to easing geopolitical tensions in the Middle East, could trigger a massive short squeeze (buying pressure resulting from the liquidation or covering of short positions) and lead to an explosive additional rally if it breaks above $75,300 in the short term.

According to cryptocurrency media outlet Bitcoinist on April 11 (local time), virtual asset analyst Ali Martinez diagnosed that a huge liquidity pool has formed just above the current price range and that short sellers betting on a decline are gradually falling into a trap. He warned that if Bitcoin's price pushes up to $75,300, approximately $80 million worth of short positions would be liquidated, which would trigger a cascade of forced liquidations and become a powerful upward fuel to push the market even higher.

In the virtual asset market, market makers and large whales often push prices into high-liquidity zones to shake out speculative forces. Martinez noted that Bitcoin is currently trading above a dense supply concentration zone ranging from $63,100 to $73,200. The analysis suggests that as long as the price remains within this range, it will secure strong downside support because numerous investors who bought in this zone will psychologically try to defend their entry price.

However, he also pointed out the risk if this strong defense line breaks. He cautioned that if the $63,100 support level is breached, Bitcoin would fall into a so-called liquidity vacuum, and with insufficient buying pressure to absorb the flood of selling pressure, it could plummet uncontrollably to the next significant defense line.

In addition to the short-term liquidation scenario, Martinez highlighted Bitcoin's long-term technical benchmark: the 10-year trend line. He explained that this upward trend line has historically acted as a shield protecting parabolic rises and is currently located between $56,000 and $60,000. While this figure requires a decline of about 17% to 23% from the current $73,000 level, it is considered a key zone where smart money completes its full accumulation for the next bull run.

As the ultimate last resort, assuming the worst-case macroeconomic deterioration, he presented the Cumulative Value-Destroyed Days (CVDD) indicator. Martinez noted that this indicator currently points to approximately $47,960, predicting that even if the market collapses, this price range would serve as an ultimate structural bottom where a violently strong upward reversal could occur.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*