According to data from BlockBeats and Coinglass, Bitcoin is currently hovering at a critical liquidity level that has the potential to cause significant liquidations on major centralized exchanges (CEXs).
Bitcoin’s Price Volatility
Bitcoin’s price volatility has put it in a precarious position as it approaches the key $87,000 mark. Traders and investors are closely monitoring the situation as any breakdown below this level could lead to a cascade of long liquidations totaling around $216 million.
📉 Why the $87K Threshold Matters?
The $87,000 threshold is crucial as it represents a major support level for Bitcoin. A breach below this point could signal further downside potential, triggering panic selling and liquidations among traders holding long positions.
⚡ What to Expect Next?
If Bitcoin fails to hold above $87K, the next critical support levels to watch are $85,000 and $82,000. Conversely, a bounce back above $90,000 could alleviate some selling pressure and pave the way for a potential recovery.
🤔 Is it Time to Buy or Sell?
With Bitcoin teetering at a critical juncture, traders are advised to proceed with caution. Those looking to buy should wait for a clear confirmation of a reversal, while sellers may consider setting stop-loss orders to manage risk in case of further price declines.
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