Bitcoin (BTC) is approaching a critical $85K–$91K zone, with rising volatility and liquidation clusters suggesting potential short-term market swings.
The current market environment shows elevated volatility, with BTC trading near $92,000 after a 9% monthly decline. While some market participants interpret shakeouts as potential accumulation periods, historical outcomes have varied depending on broader macroeconomic and liquidity conditions.
BTC Approaching Shakeout Zone
Crypto analyst Merlijn The trader notes that Bitcoin is approaching a level that could trigger significant short-term selling. In a recent video post, Merlijn observed, “Fear will peak. Retail may panic. Smart money will accumulate. These levels have historically coincided with increased market activity.”
Bitcoin (BTC) Shakeout Zone Approaching: BTC Volatility Surges as Traders Watch $91K Liquidation Levels. Source: @MerlijnTrader via X
Bitcoin has experienced volatility spikes above 45% this month. Data from VanEck’s BTC Yardstick shows the market price currently below its realized network value (-1.6σ). This metric compares BTC’s market price to its historical network value; past deviations below this benchmark have sometimes persisted for weeks before any recovery.
Whale activity has also been significant, with 269,822 BTC reportedly accumulated over the past 30 days, though thresholds for notable accumulation vary depending on historical trends.
Liquidation Clusters and Market Dynamics
A Coinglass BTC liquidation heatmap shows liquidation risk across $81,000–$97,000 price bands, with total potential exposure estimated at approximately $396.77 million. Analysts note that these heatmaps reflect current leverage and open interest, which can shift quickly, making them more useful as short-term risk indicators rather than deterministic predictors. In the last 24 hours, $135 million in crypto liquidations occurred, with Bitcoin longs impacted most heavily at $44 million versus $2 million in shorts.
BTC Approaches Critical Levels: 91000 Short Liquidations and 86000 Long Liquidity Clusters. Source: @TedPillows via X
Analyst Ted (@TedPillows) highlighted that prices may sweep upside liquidity before reversing to trap long positions: “A sweep of upside liquidity could occur before a potential retracement.”
Futures data also highlights two key zones of interest:
Upside short liquidations: around $91,000
Downside long liquidations: near $86,000
Technical Analysis: Rising Channel Support
According to TradingView analyst Stevenexpert540, Bitcoin is trading within a rising channel, showing higher lows and a generally bullish structure. Buyers have defended a support zone near the channel’s lower boundary, where price previously reacted with strong momentum.
Bitcoin holds support in a rising channel with resistance near 89400, showing potential for an upward move, but a pullback is possible. Source: Stevenexpert540 via X
“A sustained move above the trendline could retest the upper channel near $89,400. Failure to hold the trendline may lead to a short-term pullback,” the analyst explained.
Resistance levels above remain well-defined, having rejected prior upward attempts. Market participants are monitoring whether BTC can break through or consolidate, highlighting the importance of technical context for short-term traders.
Final Thoughts
Bitcoin’s current position near $85K–$91K represents a potentially volatile period, with liquidation clusters and technical formations suggesting that short-term swings are likely. Historical shakeouts provide context but do not ensure specific outcomes.
Bitcoin was trading at around 87,388, down 1.50% in the last 24 hours at press time. Source: Bitcoin price via Brave New Coin
Market participants should distinguish between trader-focused near-term signals and longer-term investment considerations. While whale accumulation and bullish trend structures could support upward potential, outcomes remain contingent on market conditions. Prudent risk management, careful analysis, and measured decision-making remain essential in navigating Bitcoin’s current environment.