Bitcoin Trapped Between Liquidation Zones Ahead of Fed Decision
Bitfinex analysts have identified two liquidation zones near $76,000 and $82,000 as Bitcoin remains trapped between them.
The analysts believe that the Federal Reserve's interest-rate decision could produce enough volatility for Bitcoin to approach both boundaries.
Short positioning above $82,000 has risen 43%, leaving up to $1.95 billion exposed to liquidation, while leveraged long positions have accumulated between $75,000 and $76,000, making a sustained decline beneath the range floor potentially force traders to close their positions and deepen the fall.
The Bitfinex analysts also noted that falling spot-market selling meets rising leverage before the Federal Reserve's interest-rate decision, which could limit any Bitcoin rally after the decision. They pointed out that high real Treasury yields and energy-driven inflation could cap BTC gains even if the initial Fed reaction pushes the price through $82,000.