Bitcoin is struggling to hold $78,000 after hitting lows at $76,460. A liquidation heatmap shows considerably larger short than long liquidation leverage, which could fuel a rally towards $85,000 if buyers reclaim $80,000.
Bitcoin is struggling to sustain a move above $78,000 after touching lows at $76,460. The recovery has not yet turned into a convincing bullish reversal. Yet leveraged positioning points to a possible short squeeze if buyers step in.
Bitcoin trades below resistance at $78,943
The market has been through a period of heightened volatility, and the situation intensified after a reported $6.3 billion security breach at Binance. Bitcoin now trades below an important resistance level near $78,943, and buyers have yet to regain control, according to the chart.
The volume profile shows a significant concentration of trading activity between $76,000 and $79,000. Bitcoin is trading inside that region, so its ability to hold above it matters for the next move. If buyers reclaim $78,943, the recovery could extend towards $80,000 and above.
Short liquidation leverage is considerably larger than long
The liquidation heatmap shows nearly $11 billion in cumulative short liquidation leverage towards the upper end of the displayed range. Potential long liquidation leverage on the downside totals roughly $3.5 billion.
A sustained recovery could force short positions to close, which may add buying pressure and speed a move towards higher liquidity concentrations, probably at $85,000. The heatmap also marks significant short-liquidation clusters around $82,000, which Bitcoin would need to overcome.
Downside risk sits at $74,336
If buyers reclaim $80,000, the short squeeze towards $85,000 could gather momentum. However, losing $74,336 would shift the advantage towards sellers and put the $70,000 threshold at risk.
Source: Coinpedia Fintech News
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