A famous crypto analyst named Crypto Rover has issued a warning as a result of the sudden and dramatic surge in Bitcoin (BTC) shorts to an incredible $3.1 billion. The analyst predicted a possible wave of liquidations if Bitcoin breaks $38,500 in a series of tweets that he posted on Twitter.
The anxiety was raised by Crypto Rover’s first tweet, which said that over $430,000,000 in shorts would be liquidated if Bitcoin reached $38,500. This raised doubts among traders and investors and suggested that there would be big changes in the market.
A short while later, an update from Crypto Rover revealed that there was a steady stream of short sellers entering the market. He clarified that an increasing number of Bitcoin shorts are entering the market in his second tweet.
https://x.com/rovercrc/status/1729773710809129196?s=20
As the analyst pointed out, there are $3.1 billion in short positions in Bitcoin that are expected to close between $38,500 and $38,700. Nevertheless, another short squeeze is expected. A “short squeeze” occurs when short sellers are compelled to pay their losses by buying back their positions, which drives up the price of the asset.
Bitcoin approaching critical level
Crypto Rover tweeted again, emphasising how urgent the issue was: “Bitcoin is breaking!!!!!” “The next resistance is $39,700!” This claim implies that increased market volatility may occur soon as the cryptocurrency approaches a crucial barrier level.
According to the most recent statistics available, the price of Bitcoin is currently $38,242, up 3.14% over the last day and a noteworthy 11.64% over the last 30 days. The $38,500 barrier that Crypto Rover drew attention to is now a significant focal point for market players.
Should Bitcoin surpass this threshold, it may set off a series of selloffs that might, in the near run, drastically alter the cryptocurrency market. Traders and experts will be intently observing if Bitcoin can break above the $38,500 barrier and whether a big correction is imminent in the end.
