Bitcoin Liquidation Thresholds

Right now, there are two significant liquidation thresholds that Bitcoin is positioned between. Knowing which way the price will go in the future is crucial.

Key levels at roughly $68,900 and $66,000 are highlighted on the Binance BTC/USDT liquidation heatmap, likely to affect price action.

As BTC approaches these thresholds, the risk of heightened volatility rises, serving as important liquidation points. Depending on which level is tested first, BTC may see either a breakout or breakdown under pressure from both directions. The higher level, approximately $68,900, corresponds to a significant resistance level.

A new bullish wave may be initiated if Bitcoin surpasses this barrier and sees a sharp price increase. Conversely, a decline below $66,000 might trigger a chain reaction of selling, potentially causing a significant sell-off.

Recent price charts reveal that Bitcoin has encountered difficulties breaking above the $67,970 mark. Moving averages are tightening, particularly the 50, 100, and 200 EMAs, indicating potential sharp price changes.

A downward trend in volume indicates hesitancy among traders. While there is a local uptrend for Bitcoin, strong buying momentum may hinder a breakout from this narrow range. A breakdown would put the important support level at $66,000 to the test, which could either serve as a safety net or trigger a sharp decline.

With volatility expected to increase as these thresholds draw closer, the next move could be significant. Traders should prepare for swings in either direction based on how Bitcoin reacts between these pivotal points.

This article was originally published on U.Today