Bitcoin may be about to experience a significant spike in volatility as it approaches the significant long order sector at about $67,000. If that price range is reached, we might witness a spike in liquidation volume, which would greatly increase volatility. Regretfully, there is downward volatility in this instance. If the price exceeds $69,000, though, everything is reversed.
At the moment, Bitcoin is trading just below this crucial barrier at $67,500. This $67,000–$690,000 range will be critical for long traders, according to a chart and heatmap. If Bitcoin moves in this direction and enters the crucial zone, more liquidations will come in and drive up the price of the asset. The CoinGlass heatmap unequivocally demonstrates that levels of liquidation are where saturation has happened the greatest, which in turn suggests that higher volatility is expected.
This most recent wave of market activity leaves BTC stabilising above this level, at least in the obvious short-term time frame. The current state of market sentiment is contradictory and overtaken by a number of factors, chief among them the continued frenzy surrounding the possibility of Ether ETFs in very short order, which brings back both bearish and bullish tendencies and adds another level of complexity to the short-term price movement for Bitcoin.
This will completely invalidate the bearish scenario and lean towards genuinely fueling significant price surges if the quoted price of Bitcoin breaks $69,000 with vigour. A breakout like this might push Bitcoin to all-time highs by attracting fresh bids that would further pressure short sellers. The true secret is to maintain volume with great velocity, since this will supply the pushing fuel required for a crucial vertical move.
If Bitcoin is unable to maintain its position above the $67,000 support, it is expected to experience more declines over protracted liquidation, perhaps reaching the next level of support, which is now at $64,000. Given that traders respond quickly to changes in price, conditions are certain to be very volatile.
