Bitcoin’s price has been pretty flat lately, after a sudden 11% jump last week. It’s back to hanging around $86,000. Analyst Burak Kesmeci thinks we’re about to see some serious price swings.
Key Price Levels: $84k and $87k
Kesmeci used a liquidation heatmap to pinpoint two crucial price points for Bitcoin: $84,849 and $87,043. A liquidation heatmap shows where lots of leveraged trades are at risk of being closed out (liquidated). Big clusters mean lots of stop-loss orders are waiting to trigger, leading to potential price movements.
What Happens Next?
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Breaking Above $87,043 (Bullish): This could trigger a short squeeze. Traders who bet against Bitcoin (short positions) would be forced to buy back, driving the price up. Bitcoin could then hit $90,000, maybe even higher ($94,000 or $99,000) if buying pressure is strong enough.
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Falling Below $84,849 (Bearish): This would likely liquidate many long positions (bets that Bitcoin would go up). This would create a big sell-off, potentially pushing the price down to $84,000, or even lower ($83,000 or $80,000).
Bitcoin’s Current State
Right now, Bitcoin is trading around $86,389. It’s slightly up for the day and week, but down significantly over the past month. Trading volume has also dropped dramatically, suggesting less market activity.
The Bottom Line
While Kesmeci’s analysis points to two possible scenarios, Bitcoin could also just stay stuck between these two price levels unless something big happens in the market. It’s a waiting game.
