Bitcoin Price Prediction: Can the $10B Liquidation Lead to BTC Price Surge?

Since November, the Bitcoin market has encountered substantial volatility that removed more than $10 billion from its open interest pool. The intense market correction seems to indicate a period of market adjustment before the price recovery could start. Various experts have highlighted their predictions about Bitcoin, but most indicate that its essential parameters stay stable. Analysis shows how the Bitcoin market reset could trigger a sizable price increase while considering expert opinions about its eventual market movement.

The $10 Billion Liquidation: A Major Reset in Bitcoin’s Market

Trading experts remain concerned about Bitcoin’s future after over $10 billion of Bitcoin open interest has been liquidated over two months. Bitcoin reached an all-time high in open interest when it hit $33 billion on January 17. 

A significant price correction occurred in the Bitcoin market because of political instability in former U.S. President Donald Trump’s actions, triggering liquidations throughout the system. Open interest from February 20 to March 4 declined to almost $10 billion within the specified period. The quick reduction of open interest indicates that traders expect the market to perform a necessary reset. According to analysts, markets need resets to eliminate speculative excess before stabilizing at solid fundamentals.

The CryptoQuant analyst Darkfost has observed on X that the 90-day futures open interest has decreased by 14%, which signifies typical market reset conditions before price increases. Market cleansing through liquidations functions to eliminate dangerous investment risks, which generally get a negative reception. Bitcoin has settled on a more stable foundation after analysts removed speculative excess, thus creating an environment for future growth.

🔍 The $BTC market is deleveraging : A Natural Reset ?

On January 17th, Bitcoin's open interest reached an all-time high of over $33B, indicating that leverage in the market had never been this high.

Following the recent panic triggered by political instability linked to… pic.twitter.com/KPLQ63SHx3

— Darkfost (@Darkfost_Coc) March 16, 2025

Bitcoin’s Price Floor and Recovery Potential

Market experts predict that Bitcoin demonstrates positive growth potential for the future even though the market recently declined. According to economist Timothy Peterson’s analysis, Bitcoin’s price fluctuations follow yearly patterns. Peterson’s research shows considerable Bitcoin price growth during April and October. Peterson suggests that Bitcoin could surpass its all-time high before June and predicts a median price of $126,000. This projection utilizes past trends as significant price drops in Bitcoin have generally led to powerful recovery patterns.

Bitcoin average time below trend = 4 months.
The red dotted trend line = $126,000 on June 1. pic.twitter.com/rp9IZhY8Tg

— Timothy Peterson (@nsquaredvalue) March 15, 2025

The “Lowest Price Forward” model developed by Peterson suggests Bitcoin will not decline past $69,000 in future predictions. The estimated price of $69,000 represents an advanced level, with only one out of twenty chances to fail. During previous bull markets, Bitcoin experienced 30% market retracements, leading to major price recoveries. The reset situation shows promise to experts who anticipate a market rebound during future months.

The majority of analysts hold optimistic outlooks, yet some maintain prudence regarding the situation. Crypto asset Bitcoin maintains a crucial range of around $83,528 and trades at that value at press time. The current Bitcoin market value presents an opportunity for future upward movement. According to specific market analysts, a price dip below $70,000–$73,000 could indicate the termination of the current bull market.

Can Bitcoin Rally or Will It Fall?

Bitcoin is experiencing market consolidation after major liquidations destroyed more than $10 billion from open interest. Based on their positive forecasts, professional analysts have predicted that Bitcoin would achieve fresh price peaks and extended monthly profits. 

The current state of the Bitcoin market presents prices at an important juncture because its upcoming performance will establish the future of the market’s bull phase or potential deep price adjustments. The ongoing Bitcoin market reset requires close examination from investors as it will reveal signs of revival and possible market risks. The upcoming months will reveal whether Bitcoin prices will exceed existing records or continue to lose their present growth speed.