The latest data from Coinglass, as reported by BlockBeats, highlights a concerning trend for Bitcoin traders. If Bitcoin’s price plunges under $84,000, the potential for substantial liquidations of long positions on major centralized exchanges (CEX) looms large, with an estimated total exceeding $862 million.
Bitcoin’s Vulnerability to Liquidations
Traders are on high alert as Bitcoin hovers perilously close to the $84K mark, a critical support level that, if breached, could trigger a cascade of forced liquidations. The mounting pressure on long positions underscores the fragility of the current market sentiment.
📉 Why Bitcoin Faces Liquidation?
The looming liquidation threat stems from the precarious position of Bitcoin’s price, which is flirting with a significant downturn. A breach below $84,000 could unleash a domino effect of forced sell-offs, exacerbating the selling pressure and potentially pushing the price even lower.
⚡ What Lies Ahead for Bitcoin?
Bitcoin’s immediate future hinges on its ability to defend the $84K support level. Failure to hold this line could lead to a swift descent towards $80K, with the $75K level emerging as the next critical barrier. However, if bulls manage to stage a strong defense, a potential rebound towards $90K may be in the cards.
🤔 Is it Time to Buy or Sell Bitcoin?
Given the heightened risk of liquidations and the pivotal $84K support level, traders are advised to exercise caution. Buying into a falling market carries inherent risks, while selling prematurely could result in missed opportunities if a reversal occurs.
To navigate these uncertain waters, it’s crucial for traders to closely monitor price movements, volume trends, and market sentiment to make informed decisions.
Drop your thoughts below regarding Bitcoin’s potential trajectory amidst the liquidation threat!
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