Bitcoin Price Could See Significant Movement as Leveraged Positions Liquidate
Jiang Zhuoer, founder of the B.TOP mining pool, has sounded the alarm about potential price movements in Bitcoin. According to Zhuoer, a significant correction could occur after the liquidation of highly leveraged positions in the market.
Zhuoer believes that if Bitcoin clears the intense liquidation zone above $76,000 and Ethereum tests its own liquidation zone around $2,665, it could lead to a significant portion of short positions being liquidated at higher levels. However, Zhuoer notes two possible scenarios for the market's future direction.
In the first scenario, if Bitcoin recovers without falling below $75,000, the rally could continue up to $80,000. In this case, the price may even test the strong resistance zone between $83,000 and $84,000. However, Zhuoer warns that a larger correction could follow such a rise.
In the second scenario, if Bitcoin loses the $75,000 support level, a deeper correction is expected to occur, potentially leading to a price fall to the $70,000-$72,000 region before entering the next phase of the bull market. Zhuoer notes that the upcoming vote on the bill and developments from the Fed will be important catalysts for determining the direction of the market.