Bitcoin’s $2B Liquidation Storm: Will It Break $87K or Plunge Below $80K?

• A price exceeding $87,000 would lead to $2 billion in short liquidations while creating a fast upward movement in Bitcoin value.
• The level has experienced multiple retesting incidents which demonstrate both technological and psychological power for future upward price movements.
• Bitcoin will experience dramatic price fluctuations over the next few days with growing liquidations combined with leveraged positions.

Bitcoin’s recent price movement has positioned it near a crucial liquidation level, with traders closely monitoring the $87,000 mark.The current trading value of cryptocurrency stands at $83,978.19 while showing a 1.5% decrease throughout the last 24 hours. Bitcoin continues to trade between $83,711.74 and $86,375.76.

A cumulative total of $2 billion short contract liquidations will occur when Bitcoin reaches $87,000 according to the Bitcoin Exchange Liquidation Map. This level is considered a critical resistance zone where a significant number of short positions will be forced to close, potentially fueling a sharp price surge.

Bitcoin Nears $87K: Short Squeeze or Retracement Ahead?

The liquidation map shows $2.09 billion in total short liquidation leverage which Binance contributed $17.39 million and OKX contributed $9.34 million and Bybit contributed $25.86 million. Traders seem to predict Bitcoin’s price will go down through their increased short positions but a short squeeze could emerge if Bitcoin rises instead.

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The $87,000 Bitcoin threshold serves as a possible trigger for market volatility since traders might rush to close short positions during a liquidation cascade. The market currently shows increased volatility because price spikes frequently occur during such situations.

However, Bitcoin’s inability to break through this level would likely trigger a price decline as short sellers regain confidence to sell. The current Bitcoin market conditions indicate that significant price swings will dominate the next few days.

Bitcoin Liquidation Surge: Will $80K Hold or Trigger a Cascade?

Over these seven months the BTC Total Liquidations Chart reveals multiple elevated liquidation events which demonstrate sharp market uncertainties. In November and December 2023 Bitcoin experienced a significant price rally which reached its maximum temporarily while settling around $80,000 when the year began. Prominent liquidation activities began in late February after the market dropped steeply as many traders kept excessive leverage on their bullish positions.

Source:Coinglass

Bitcoin has repeatedly confronted psychological and technical support barriers at the $80,000 level in its price movements. A sustainably higher position above $80,000 would initiate bullish momentum to push BTC close to $100,000.

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