As the rise in Bitcoin price continues, lingering leveraged positions in the market have brought potential liquidation zones back into focus. According to Alphractal CEO and market analyst Joao Wedson, an examination of open positions over the past 30 days highlights levels particularly high at $61,000 and $57,000.
Wedson noted that numerous positions were opened when Bitcoin was trading between $65,000 and $68,000, around the $61,000 mark. It is assessed that a significant portion of leveraged positions could come under pressure if the price falls to this level.
The lower $57,000 level stands out as a stronger liquidation zone. According to Wedson, a significant portion of the positions at risk of liquidation at this level were opened when Bitcoin was trading between approximately $63,000 and $66,000.
The analyst pointed out that these areas are important not only in terms of liquidation levels but also because of investors’ stop-loss orders. Investors placing stop-loss orders around $61,000 and $57,000, believing the price is unlikely to reach these points, could further increase selling pressure in the event of a sharp decline.
On the other hand, there are also potential liquidation zones on the upside. Wedson stated that there is a significant amount of liquidation in the $85,000 to $86,000 range, but most of these stem from positions older than a month.
*This is not investment advice.
