Bitcoin May Test Key Liquidation Zones Amid Fed Decision Uncertainty
Bitcoin's price may be set to test two key liquidation zones in the wake of the Federal Reserve's interest-rate decision, according to analysts at Bitfinex. The asset has been trading between $76,000 and $82,000 for an extended period, with a growing pool of leveraged positions above and below this range.
The short-liquidation area near $82,000 is particularly concentrated, with up to $1.95 billion exposed to liquidation if Bitcoin moves through the upper boundary of its current range. In contrast, long-liquidation levels are distributed more evenly below the market, with a large pool of potential forced selling between $75,000 and $76,000.
A break below $76,000 could trigger a cascade of long liquidations spread across several price levels, while a breakout above $82,000 may encounter less spot supply from long-term holders who have been reducing their profit-taking. However, the analysts caution that high real Treasury yields and energy-driven inflation could limit any Bitcoin rally after the decision.