Bitcoin – Why BTC price faces $78K risk amid $957M crypto liquidations

Ethereum [ETH] accounted for the largest share at $292.83 million, while Bitcoin [$BTC] trailed it closely at $203.01 million. Both of them accounted for over 50% of the total liquidations.

However, $BTC held above the $83,000 support level for some time before dropping to nearly $80,000. It later recovered to $81,000, where it traded at press time. This suggests that traders had already priced in much of the shock.

Bitcoin tests $80K support after the liquidation

The $203.01 million in liquidation has put Bitcoin’s market structure at risk and pushed the price downward near $81k. The previous support area for leveraged buyers was at $83,000.

However, Bitcoin broke below this level and failed to return above the upper end of the range at $84,300-$84,500.

In other words, this failure indicates that continued selling from forced liquidations will outweigh buying attempts. As such, if a strong reversal does occur, it would imply that buyers have absorbed nearly all the selling pressure and could lead to a move upward toward $82,500.

Instead, if a sell-off occurs, it could trigger additional stop-loss selling and potentially drop prices down to levels as low as $78,000, further extending the effects of the recent liquidation.