Bitcoin [BTC] continues to show strength, with its current trading price above $63k. Current market data suggests that BTC has the potential to move higher.

However, volatility could increase due to the recent surge in price movement, which could lead to short-term reversals. A key level to watch if Bitcoin holds above is $62,500.

If BTC falls below this level, a flood of liquidations could push the price lower. Despite these risks, Bitcoin's overall uptrend remains stable, with potential support near the $60k price zone.

Bitcoin Liquidation Update

Liquidations continue to play a major role in BTC price movements. Over the past 24 hours, Bitcoin has seen a total of $23.29 million in liquidations, with $16.42 million coming from longs and $6.87 million from short sales.

The broader crypto market saw 39,721 traders liquidated, with total liquidations reaching $90.03 million. The largest single liquidation occurred on Binance exchange for the BTC/USDT pair, with a value of $5.13 million.

These liquidations often indicate potential reversal zones in the market, providing insight into the next direction of price.

Looking ahead, if Bitcoin reaches $69k, another $1.9 billion will be liquidated, affecting 81,320 transactions. The price is expected to head towards this liquidity level, although a short-term correction is possible before BTC rises to $69k.

Traders on social platforms are also advised to be cautious, suggesting appropriate risk management of short-selling trades as the market recovers volatility. DeFi Mann posted on X, formerly Twitter, writing:

If you have a short liquidation trade at 70k, manage your risk. Otherwise the market will manage it for you in the next 2 weeks.

Liquidation Level Focus

Finally, liquidation maps, which show where traders' large positions may be liquidated, have highlighted potential areas of Bitcoin volatility.

Bitcoin's largest concentration of liquidations is near $62,500 and $60,000. If the price falls below these levels, it could trigger more liquidations, leading to increased volatility and downward pressure.

Bitcoin remains in a strong position, with the potential to move higher. However, traders should be wary of a spike in volatility and liquidation, especially if BTC falls below key levels like $62,500. If market conditions remain favorable, BTC could continue its uptrend, aiming for higher prices in the near future.