Bitcoin Pulls Back Amid Rising Risk of Liquidation Cluster

Bitcoin's price has retreated after being rejected at $66,000, with a significant wave of capital exiting the market. The cryptocurrency is now attempting to cross this level again after a 4.8% drop. Although bullish optimism has returned, recent liquidation data suggests that there is still a risk of a pullback.

Liquidation cluster analysis from CoinGlass shows a build-up of liquidity below $60,000 to $61,500, which could pull the price lower to fill buy orders before any sustained rebound. The possibility remains in play here, with the price potentially getting dragged down to fill these buy orders.

Short liquidations totaled $35.56 million against $3.03 million in long positions, an 11.7-times gap that highlights how much weight long traders carry on Bitcoin at the moment. However, the Funding Rate, which gauges whether investors are largely financing long or short contracts, shows that bulls are dominating the market.