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 formidable psychological resistance of $80,000, a massive $1.7 billion in bidirectional liquidation volume is concentrated both above and below this level, creating a tense atmosphere in the market, akin to the calm before a storm.

According to 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 level of the 2026 recovery market at around $78,126. With the Relative Strength Index (RSI) 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 completely capitulated to an early accumulation phase.

The strong backing for this rally comes from the relentless buying spree of 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 weaker dollar are also supporting the rise of the leading cryptocurrency. Major altcoins, including Ethereum (ETH), XRP (Ripple), and Solana (SOL), are also rising in tandem, indicating a positive trend of increasing risk asset preference across the board.

However, beneath these positive indicators lies a treacherous minefield of devastating cascading liquidations concentrated in a narrow range. Derivative market data shows $879 million in long position liquidations below $76,829 and $841 million in short position liquidations above $79,178. If a trigger is pulled on either side within this narrow fluctuation range of just over 3%, extreme volatility, with thousands of dollars fluctuating in minutes, could be unleashed, making premature use of leverage potentially fatal.

Some still express cold pessimism. Renowned analyst Maxi Trades, based on past sideways market breakout patterns, warned of a pessimistic downside scenario where the leading cryptocurrency has not yet hit a true bottom and could plunge 36% to $50,000. Furthermore, the rapid shift in market sentiment from extreme pessimism to extreme FOMO in just seven weeks also heightens caution about market overheating and adds weight to the possibility of sell-offs and corrections.

Experts predict that if the leading cryptocurrency definitively breaks through $80,000 on a weekly closing basis, it will 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, accelerating the downtrend. Therefore, investors are strongly advised to implement thorough risk management and a conservative dollar-cost averaging 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.*