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Bitcoin’s ‘Easy Mode’ Over – Potential Leverage Risks in the Future

Bitcoin, the biggest cryptocurrency, is going through a tough time. Traders who are using leverage should be careful as the price can jump in different directions. Analysts say there are potential dangers traders are facing. Let’s break down the current position of Bitcoin and see what this is all about.

Bitcoin market analysis with focus on leverage liquidations.
Source: Coinbackyard

Market Dynamics

  • Leveraged positions in Bitcoin totaling $39 million have been liquidated within a mere 24-hour window.
  • This includes $18.38 million in long positions and $20.62 million in short positions, according to CoinGlass data.
  • Analysts observe a trend where market makers capitalize on high emotions and speculative behavior, often leading to significant losses for leveraged traders.

Honeybadger, who knows a lot about trading crypto, sees something on the Bitcoin chart. There’s a pattern called a symmetrical triangle. It means things are not clear, neither good nor bad. He says traders should be careful not to jump into buying too soon. There’s a risk they might lose money if the pattern is not what it seems.

Market Projections

  • Andrew Kang, co-founder of Mechanism Capital, offers a more optimistic outlook, anticipating a continuation of the upward trajectory post-Bitcoin halving on April 20.
  • Kang predicts a potential surge to $80,000 by May, aligning with bullish sentiments amidst recent market fluctuations.

Risk Assessment

  • Recent market turbulence, including a 5% price drawdown on April 2 and a subsequent drop below the $68,500 support level, underscores the precarious nature of leveraged trading.
  • The increase in leveraged positions amplifies the vulnerability of traders to significant losses in the event of adverse price movements.

Potential Liquidation Scenarios

  • A 5% increase in Bitcoin’s current price to $73,819 could trigger the liquidation of approximately $2.14 billion in short positions.
  • Conversely, a 5% decrease to $66,671 might lead to the liquidation of around $1.63 billion worth of long positions.

Expert Advice

In the crypto world, people like Peter Schiff say it’s smart to be careful. They warn against being too confident and remind everyone that markets can be very unpredictable. Experienced traders like Honeybadger also think it’s best to play it safe. They tell other traders to be cautious and avoid taking unnecessary risks, especially when the market is extra shaky.

With Bitcoin going through a bumpy ride in the market, traders should be careful. They need to be cautious and avoid taking big risks when trading.

During uncertain times, it’s important to be patient and watchful. These are key strategies for protecting your money when the market keeps changing.

April 14, 2024 at 9:00 am

Updated April 14, 2024 at 9:00 am


Remember, investing in cryptocurrencies involves risks, and it’s important to conduct thorough research and seek professional advice before making any financial decisions. (Please keep in mind that this post is solely for informative purposes and should not be construed as financial or investment advice.)


Recently, leveraged positions totaling $39 million were liquidated in just 24 hours, demonstrating the high volatility and risks in Bitcoin trading.

Experts like Andrew Kang from Mechanism Capital predict a potential rise to $80,000 post-Bitcoin halving, reflecting optimism despite market fluctuations.

Traders should monitor market signals closely, avoid emotional decision-making, and consider expert analyses to make informed trading decisions.

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