Bitrabo Editorial
Recently, the price of Bitcoin has seen significant changes due to instability in the market, leading to growing fear and uncertainty within the cryptocurrency space. Given the current indicators, it’s likely that Bitcoin will experience even more significant fluctuations in the near future.
Upcoming High Volatility Expected for Bitcoin
As Bitcoin nears key price levels, the likelihood of substantial price shifts is increasing, according to Alphractal, a sophisticated investment analysis platform. They caution that BTC may soon encounter heightened volatility that could result in large liquidations, putting pressure on traders and investors.
This forecast comes amid a more unpredictable market where bulls and bears are vying for control. Alphractal made this analysis based on the Aggregated Liquidation Levels Heatmap from the past 7 to 14 days.
The analysis indicated that over the past week, there were significant long positions on major exchanges, creating sizable liquidation pools with a critical pain point just under $60,000. For the previous two weeks, the highest liquidation threshold remained around the $67,000 mark.
Alphractal pointed out that new liquidation levels typically emerge above the market price, which occurs during both rising and falling prices. This is because liquidity traces left by market makers are systematically revisited and utilized over time, regardless of the specific timeline.
As the cryptocurrency approaches these vital support and resistance thresholds, many investors are preparing for the next significant movement of Bitcoin, which may lead to either prolonged market consolidation or a rapid climb to a new all-time high in the coming months.
As this article was being written, Bitcoin was trading at $61,970, reflecting a 1% drop in the last 24 hours. However, over a broader timeframe, the price has risen by 1.35% in a week and by 12% over the past month.
Crypto Leaders Remain Confident Amid Bitcoin’s Volatility
Even with Bitcoin’s potential for high volatility, influential figures in the cryptocurrency sector, such as Cathie Wood, CEO of Ark Invest Management Firm, remain very optimistic about its long-term potential.
In a recent discussion on Bloomberg Intelligence, Wood reaffirmed her belief in her earlier prediction that Bitcoin could reach $1 million, despite the increased market volatility and economic uncertainty.
Wood explained that her and her firm’s confidence in Bitcoin rises with the level of volatility and uncertainties in global economies. She attributed this belief to recent inflation concerns, driven by supply chain issues, where BTC acted as a hedge amid high inflation.