Bitcoin reaching $72,000 could be the catalyst for breaking through the psychological barrier of $75,000. Analyst Willy Woo suggests that if the price of Bitcoin hits this milestone, it could trigger mass liquidations and pave the way for new all-time highs. Woo highlights in a post to his followers on June 5 that tapping $72k may set off a liquidation cascade, potentially liquidating $1.5 billion of short positions as the price climbs towards $75,000.

Bitcoin saw a 3.15% increase in the 24 hours leading up to 8:05 am UTC on June 5, reaching a trading value of $71,124. The cryptocurrency is up by 4.8% on the weekly chart, as reported by CoinMarketCap.

Bitcoin's price currently faces resistance levels at $71,500 and $72,000. According to CoinGlass, surpassing $72,000 could lead to the liquidation of approximately $800 million in leveraged short positions across various exchanges. Beyond the $72,500 mark, the liquidation of over $1.2 billion in leveraged short positions could be triggered. Despite being 3.4% lower than its previous all-time high of $73,740 on March 14, Bitcoin is poised to test new highs.

After the post-halving distribution 'danger zone' concluded on May 6, Bitcoin's price has been on an upward trajectory. Rekt Capital, a renowned crypto analyst, noted that Bitcoin broke out of a two-week downtrend on June 3, signaling a positive shift. However, to enter the 'parabolic phase' of the bull cycle, Bitcoin must first turn the $72,000 resistance into support.