Bitcoin traders brace for volatility as $18 billion in leveraged longs face potential liquidation. Weekend range-bound action sets stage for Monday's decisive move.
Bitcoin continues trading near $95,522, showing minimal reaction to proposed U.S. tariffs on European nations. Traders are preparing for potential volatility as futures markets approach opening hours, with critical price levels determining the next major move.
According to CryptoRover on X, Bitcoin is currently trading slightly below the CME close at $95,522. So far, there has been barely any market reaction to the proposed new U.S. tariffs on European countries. That said, traders should remain cautious as futures markets opening in about 12 hours could trigger a pickup in volatility.
The current price action suggests traders are waiting for confirmation before committing to directional bets. Volume remains subdued during weekend hours, creating a classic range-bound scenario that often precedes significant moves once traditional markets reopen.
Must Read: Bitcoin Hovers at $94K: Weekend Range or Breakout Surge?
Liquidity Clusters Signal Downside Bets
According to TedPillows on X, $BTC has decent liquidity clusters around the $96,000-$98,000 level. It seems like most people are betting on a big downside here.
The concentration of liquidity in this zone suggests resistance ahead. If Bitcoin breaks through this level with conviction, short sellers could face painful squeezes. However, the current positioning indicates bearish sentiment dominates trader expectations.
LennaertSnyder on X noted that $BTC is still chopping within the weekend range. Bitcoin is forming a classic weekend range, which often functions like engineered liquidity during the following week.
His dream scenario for long trades involves continued ranging, possibly seeing a Sunday pump, followed by sweeping weekend liquidity on Monday or Tuesday. The key trigger would be gaining the ~$95,820 high after sweeping lows, which would confirm a break in market structure.
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Critical Levels Hold Key to Direction
The ~$94,635 low remains the critical support level to hold. Losing this on higher timeframes and breaking back into the previous range would trigger downward momentum. Such a breakdown could accelerate selling pressure and target lower support zones.
Eyes remain fixed on the U.S. market open Monday. The real move is expected once traditional market participants return and liquidity flows back into crypto markets. Weekend ranges typically serve as engineered liquidity pools that get tapped during the following week.
Cointelegraph reported on X that there are over $18B in longs that would be liquidated if $BTC hits $77K.
This massive liquidation cluster creates a strong incentive for bearish scenarios if support levels fail. However, it also represents a floor where buyers might step in aggressively to defend positions. The concentration of leveraged positions adds significant risk to current market conditions.
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Trader Positioning Reveals Split Sentiment
The technical setup presents two distinct scenarios. Bulls need a decisive break above $95,820 followed by clearing the $96,000-$98,000 resistance zone to target the monthly high. Bears are positioned for a breakdown below $94,635 that could accelerate toward lower liquidation levels.
Current market structure suggests a coiled spring waiting for a catalyst. The proposed tariffs have not yet triggered significant reactions, but that could change rapidly once futures trading resumes and institutional flows return to the market.
Short-term traders are watching for engineered liquidity sweeps that could provide optimal entry points. The pattern of weekend ranging followed by Monday volatility has become a reliable playbook in recent months, making timing crucial for position entries.
With over $18 billion in long positions vulnerable to liquidation at lower levels, risk management becomes paramount. Traders employing leverage must account for potential stop hunts designed to clear these positions before any sustained directional move materializes.
3 Key Takeaways:
- Bitcoin trades near $95.5K with minimal tariff reaction as traders await futures market opening for volatility
- Over $18 billion in long positions could be liquidated if Bitcoin drops to $77K creating massive downside risk
- Critical levels at $95,820 resistance and $94,635 support will determine next major directional move this week
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BTC Faces $18B Liquidation Risk at $77K
Bitcoin holds $95.5K as traders await volatility. $18B in longs face liquidation if BTC hits $77K. Weekend range sets up Monday's critical move.
