Bitcoin (BTC) price is facing mounting pressure as it struggles to hold above the critical $66,000 support level. This increasing weakness has heightened concerns about a potential Bitcoin liquidation event.

Key Takeaways:

• BTC price drops 1.5% on July 30, following a steeper rejection from $70,000.
• Liquidation risk increases as $66,000 support weakens.
• DecenTrader warns of long liquidations starting below $64,000.
• Short-term holders show accumulation signs, indicating potential bullish sentiment.

Bitcoin Faces Liquidation Threat

A recent decline in Bitcoin’s price has sparked worries about a looming liquidation event. The cryptocurrency has struggled to maintain support at $66,000, raising concerns among investors.

Data shows a 1.5% drop in BTC price on July 30, following a more significant rejection from the $70,000 level. This price weakness has led to a decrease in open interest, indicating potential selling pressure.

Grayscale Bitcoin Trust (GBTC) has also experienced outflows, contributing to the overall market downturn. The broader Bitcoin ETF market has seen substantial outflows as well, with the BlackRock iShares Bitcoin Trust (IBIT) leading the decline.

Traders Brace for Liquidations

Trading platforms are closely monitoring the situation. DecenTrader has issued a warning about potential long liquidations if BTC price falls below $64,000. However, some analysts believe that a push towards $72,000 could trigger short liquidations.

Despite the price drop, on-chain data suggests that short-term holders are accumulating Bitcoin rather than selling. This indicates potential bullish sentiment among this investor group.

As the Bitcoin market remains volatile, traders and investors are closely watching price movements and liquidation levels. Any significant break below $64,000 could trigger a cascade of liquidations, potentially leading to further price declines.