Bitcoin Trapped in Narrow Range as Liquidation Risks Mount
Bitcoin's trading range remains narrow as it hovers below $77,000 on Tuesday. This comes after a previous session where Bitcoin recovered from earlier losses.
The recent recovery has shown early signs of institutional demand returning to the market, with spot Bitcoin exchange-traded funds (ETFs) recording inflows of $160.04 million on Monday, ending a four-day streak of outflows.
However, Bitfinex's Alpha report indicates that near-term liquidation risks are increasing for Bitcoin, which has been trading within a 5.5% range for over 24 sessions. The main liquidation zones are concentrated around $82,000 on the upside and between $75,000 and $76,000 on the downside.
The analyst warns that a sustained break above $82,000 could trigger short liquidations, while a drop below $76,000 could unleash long liquidations. With the Federal Reserve's interest rate decision approaching, it would not be surprising to see both zones tested.