In the cryptocurrency market, Bitcoin’s approach to critical price levels has raised a scenario that could trigger large-scale liquidations in leveraged trading. According to recent data shared by the on-chain data platform Coinglass, if the Bitcoin price rises above $80,634, approximately $1.77 billion worth of short positions could be liquidated on major centralized cryptocurrency exchanges.
Analysts say that breaking above this level could create a strong “short squeeze” effect in the market. A short squeeze occurs when a sharp upward move in price forces short sellers to close their positions. This creates additional buying pressure, potentially accelerating Bitcoin’s rise.
On the other hand, downside risks are also noteworthy. According to Coinglass data, a drop in Bitcoin below $73,578 could lead to the liquidation of approximately $1.64 billion in long positions. Such a scenario could increase selling pressure and cause sharper price declines.
Market experts say that Bitcoin’s current price range is creating uncertainty among investors. It is noted that investors, especially those using high leverage, are closely monitoring these critical levels.
Recently, macroeconomic developments, expectations regarding US interest rate policies, and capital flows into spot Bitcoin ETFs continue to be decisive factors in price movements. Experts emphasize that if Bitcoin surpasses the $80,634 resistance level, the upward momentum could strengthen, but a sharp correction could occur if the $73,578 support level is lost.
For investors, these two levels stand out as critical thresholds that will determine the direction of the market in the coming days.
*This is not investment advice.
