Bitcoin’s price has surged past $82k, reaching a new record high. The current trajectory of Bitcoin highlights possibilities of a $1 billion liquidation if it falls to the support level, $77,253. According to analyst Ali Martinez, a drop to the $77.2k range could trigger nearly $1 billion in liquidations, posing a significant risk to traders with 100x leveraged positions.
Nearly $1 billion will be liquidated if #Bitcoin $BTC drops to $77,250! pic.twitter.com/4E9fLJLrcE
— Ali (@ali_charts) November 11, 2024
Key Support Level: $77,253
The crucial support level for Bitcoin is at $77,253, where there is the concentration of a large number of open long positions with high leverage. A drop to this level suggests that it may trigger long liquidations, thereby increasing selling pressure which would inevitably force the price down drastically. This bulls’ region, thus, provides a strategic barrier for traders as a move towards $77,253 may cause higher volatility.
Bitcoin Hits $77K All-Time High as Institutional Demand SurgesResistance Level and Short Liquidations Near $85,000
On the other hand, Bitcoin seems to have a strong resistance level at around $82000. Reaching this level would compel short-position traders, especially those with high leverage ratios like 50x or 100x, to close their positions.
To cover these short positions, there might be a need to resort to buybacks, which may create additional upside pressure. In this regard, short liquidation close to this resistance level supports the bulls’ sentiment, making it crucial to monitor this indicator for further development.
As of press time, BTC is trading at $82,088, marking a 2.74% rise over the last day. The crypto has seen a remarkable increase of 30% in a month, highlighting the possibility of both a bullish and bearish market reaction.
Joining the technical ordeal, the Bitcoin RSI is at 78.35 now, indicating that Bitcoins are in the territory of the short-term overbought. Generally, if the RSI is above the 70-level mark, it is time for the asset to cool off a bit, which causes some traders to take some adjustments. Also, the MACD indicator is above the signal line, affirming that the trend is still bullish.
