Bitcoin’s price is hovering around $66,000, reaching its highest level since July 30. A significant event looms over the market as traders closely watch the heatmap of liquidation levels. According to data, around $19 billion worth of short positions are set to liquidate at the $67,000 level.
The liquidation zone pointed out in the heatmap model within the Binance exchange show potential for a short squeeze. A short squeeze is when traders who have taken a short position on the stock expect the price to fall, covering their position and buying the stock as the price rises. As Bitcoin approaches this crucial threshold, the market participants keep watching whether these short positions are going to be forced off.
The heatmap reveals an additional $15 billion worth of short liquidations at $70,138 and another $18 billion at $73,400. The combined pressure from these liquidation levels could further fuel Bitcoin’s price rise if the market continues in its current direction.
This increase follows Bitcoin’s steady price recovery over the past few weeks. The cryptocurrency market remains highly volatile, with the potential for both upward and downward price movements. However, the cluster of liquidation points at key price levels creates tension in the market. The short squeeze could amplify Bitcoin’s upward momentum if the $67,000 barrier is breached.
Analyst Predicts Gains as Bitcoin Nears Key Resistance LevelBitcoin’s recent price action has been bullish, with an upward surge taking it past the $65,000 mark. The increase has been accompanied by significant trading volume. Over the last 24 hours, the volume surged by 83.29%, reaching $41.55 billion. Bitcoin’s market capitalization also grew by 2.15%, now standing at $1.30 trillion.
Despite this price increase, Bitcoin is facing resistance. For the past few months it has been moving in a consolidation zone, right now it is at the level of intense resistance. There is an indication that price currents are striving to attain the $67,000 mark as a breakthrough to further surge. Bitcoin crossing this level can spur a series of short squeezes while causing short liquidations taking the price to the next resistance floors of $70,000 or higher.
In the broader cryptocurrency market, Bitcoin’s trend has been rather stable while at the same time highly vulnerable to liquidations and leverage. Some of the macroeconomic factors that have affected the market includes inflation fears and oscillation in interest rates; hence, the impending liquidations are likely to make the prices more unpredictable.
