As the price of Bitcoin continues to rise, persistent leveraged positions in the market have once again brought potential liquidation zones into focus. According to João Wedson, CEO and market analyst at Alphractal, analysis of open positions over the past 30 days has revealed particularly high levels — $61,000 and $57,000.
Wedson noted that numerous positions were opened when Bitcoin was trading in the range of $65,000 to $68,000, around the $61,000 mark. It is believed that a significant portion of leveraged positions could come under pressure if the price drops to this level.
The level below $57,000 stands out as a zone of stronger liquidation. According to Wedson, a significant portion of positions at risk of liquidation at this level were opened when Bitcoin was trading roughly in the $63,000 to $66,000 range.
The analyst highlighted that these levels are important not only from a liquidation perspective but also due to investors' stop-loss orders. Investors placing stop-loss orders around $61,000 and $57,000, believing the price is unlikely to reach these levels, could further amplify selling pressure in the event of a sharp decline.
On the other hand, there are also potential liquidation zones on the uptrend. Wedson stated that a significant amount of assets is subject to liquidation in the $85,000 to $86,000 range, but most of these positions are older than one month.
*This is not investment advice.
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