Bitcoin (BTC) May Soon Experience Significant Volatility and Trigger Over $1B in Long Position Liquidations

Bitcoin (BTC) may soon experience significant volatility and trigger over $1.13 billion in long position liquidations if its price falls below the critical threshold of $82,000.

President Donald Trump’s decision to create a bitcoin reserve from cryptocurrencies seized in criminal cases, rather than an active purchase on the market, has disappointed investors and could escalate the bearish pressure on BTC.

* President Donald Trump signed a decree on March 7, 2025, for the creation of a bitcoin reserve. This will be made up of cryptocurrencies seized in criminal cases, rather than an active purchase on the market.

* The announcement disappointed investors who had hoped for the U.S. government to adopt a more aggressive BTC accumulation policy. According to analysts, this lack of direct investment has caused a short-term negative reaction and pulled back the price of BTC.

* Investors had anticipated federal accumulation, which could have signaled strong institutional support and driven prices up. However, the decision to rely solely on existing holdings has cooled these expectations, contributing to the current decline in bitcoin.

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As a result, bitcoin must close the week above $82,000 to avoid a deeper retracement. Otherwise, a drop below this level could accelerate selling pressure and trigger a cascade of liquidations in the market.

The consequences on the BTC market

* The price of BTC is currently trading at $83,335; if this figure falls below the critical threshold of $82,000, it could trigger a massive liquidation of $1.13 billion on long leveraged positions.

* This drop would lead to a cascade of forced sales, amplifying selling pressure and increasing market volatility, a scenario feared by traders and investors.

* However, despite this bearish pressure, some technical signals suggest that bitcoin may be approaching a local bottom. Its Relative Strength Index (RSI) has fallen to 28, indicating an oversold state. Analyst Rekt Capital noted on X that whenever the RSI reached this level in the current cycle, BTC was close to a rebound or a local bottom of -2% to -8%.

The coming days will be crucial for bitcoin. A weekly close below $82,000 could exacerbate the correction and trigger massive liquidations. However, a technical rebound remains possible if investors find reasons to return to buying. The market remains under high tension, like XRP, which risks a 20% drop in the coming days.

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The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.