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- 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.
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.
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.