Bitcoin (BTC) is approaching critical price thresholds that could trigger massive liquidations totaling approximately $13.7 billion across cryptocurrency exchanges, according to recent data from the cryptocurrency tracking platform Coinglass. The market faces heightened uncertainty due to escalating geopolitical tensions between the U.S. and Iran, which are negatively impacting global markets, including cryptocurrencies.
U.S. President Donald Trump stated that the direction of this geopolitical process will be clear within 10 days, adding to market anxiety. Whether Bitcoin's current downward trend continues is heavily dependent on upcoming macroeconomic data and geopolitical developments.
Coinglass data reveals two pivotal liquidation zones. If Bitcoin's price rises above $70,000, it would liquidate approximately $6.06 billion worth of BTC short positions on centralized exchanges (CEXs). Conversely, a drop below $66,000 would liquidate around $7.71 billion in long positions. This creates a narrow and volatile band where significant forced trading is imminent.
Recent market activity underscores this fragility. In the last 24 hours, leveraged trading worth $182.4 million was liquidated, comprising $103.4 million in long positions and $79 million in short positions. This affected 82,763 traders, with the largest single liquidation occurring in an ETH/USD trading pair on Binance.
Adding to the bullish pressure scenario, analysis indicates that a mere 4.3% price surge toward $69,600 could trigger a cascade of short position closures exceeding $600 million, potentially fueling a rally. Bears have maintained control amid price stagnation between $65,900 and $70,500, but excessive confidence in a downtrend is now seen as risky.
Macroeconomic factors are also in play. U.S. GDP growth recently registered at a modest 1.4%, significantly below the 2.9% expectation. This economic deceleration, coupled with persistent inflation, is leading some investors to reconsider traditional stock market exposure in favor of on-chain assets like Bitcoin.
Despite market pressures, Bitcoin's technical fundamentals show resilience. The network's hash rate has recovered to approximately 1,100 exahashes per second, alleviating fears of a miner exodus to the AI sector. Furthermore, progress on BIP-360 provides a roadmap to bolster the network's defenses against future quantum computing threats.
