Crypto Rover (@rovercrc), a recognized voice in the cryptocurrency community, raised a flag of caution for bitcoin investors today. In a tweet, they highlighted a significant risk looming over the market: if the price of bitcoin falls to $42,800, it could trigger the liquidation of long positions worth an estimated $400 million. This warning comes as bitcoin is enjoying a week of gains, with its price at $43,801 at the time of writing. This reflects an increase of 11.05% over the past seven days and a slight increase of 0.03% since Saturday.
The warning underscores the fragile state of bitcoin’s current support level and the potential impact of market movements on investor positions. Data from CoinGlass recently showed that $13.21 million in long positions have already been liquidated, a stark reminder of the crypto market’s volatility.
Investors are now on high alert and watching bitcoin’s price action closely. The possibility of such a large liquidation event has put additional pressure on traders to remain vigilant and well-informed as they navigate through potential price dips in an already unpredictable market.
