Bitcoin Trapped in a $1.7 Billion Liquidation Minefield, Can It Break Through the $80,000 Ceiling?

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As Bitcoin (BTC) targets the massive psychological resistance wall of $80,000, a huge bidirectional liquidation volume totaling $1.7 billion is concentrated both above and below, creating a tense atmosphere in the market, reminiscent of the calm before a storm.

According to the investment media outlet TradingNews on April 24 (local time), Bitcoin has rebounded approximately 30% from its $60,000 bottom and is currently attempting to break through the most crucial resistance line for the 2026 recovery market at the $78,126 level. With the Relative Strength Index on the daily chart pointing to 60, and on-chain profitability indicators recovering to the 1.0 neutral line, it suggests a dramatic shift in market sentiment from a state where most retail investors had called for complete capitulation to an early accumulation phase.

A strong pillar supporting this rally is the aggressive buying spree by the giant corporation Strategy. Having recently invested $2.5 billion to acquire an additional 34,000 units, bringing its total holdings to 800,000 units, Strategy has declared to the market that the long crypto winter is over. Macroeconomically, falling US Treasury yields and a weakening dollar are also supporting the rise of the leading cryptocurrency. Major altcoins, including Ethereum (ETH), XRP (Ripple), and Solana (SOL), are also rising alongside it, showing a positive trend of spreading risk-on sentiment.

However, behind the positive indicators lies a minefield of devastating cascading liquidations concentrated in a narrow range. According to derivatives market data, there are $879 million in long position liquidations below $76,829 and $841 million in short position liquidations above $79,178. Within this narrow fluctuation range of just over 3%, if a trigger is pulled on either side, extreme volatility could be unleashed, causing price swings of thousands of dollars within minutes, making premature use of leverage potentially fatal.

Nevertheless, some cold pessimism persists. Renowned analyst Maxi Trades warned of a pessimistic downside scenario, suggesting that based on past sideways market breakout patterns, the leading asset has not yet hit its true bottom and could plunge by 36% to $50,000. Furthermore, the market's sentiment dramatically shifting from extreme pessimism to intense FOMO in just seven weeks also raises concerns about market overheating, lending weight to the possibility of sell-offs and corrections.

Experts predicted that if the leading asset decisively breaks through $80,000 on a weekly closing basis, it would continue an unhindered rally to the $88,000 to $90,000 range, where the 200-day moving average is located. Conversely, if the $74,000 support level breaks on a daily basis, the trend could reverse, and the downtrend could accelerate. Therefore, they strongly advised investors to implement thorough risk management and adopt a conservative, staggered buying approach.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*