According to market data provided by Coinglass, the cumulative leverage liquidated in the long term of Bitcoin price has dropped to around $77,253 or around $1 billion. The chances of Bitcoin price falling back below $80,000 before continuing its rally in the near term cannot be ignored.

Furthermore, more than 60 percent of all traders on Binance exchange, the leading centralized exchange by registered users and daily trading volume, with open Bitcoin futures positions are short.

From a technical analysis perspective, Bitcoin price is on the verge of a sharp rise in the coming months, as the weekly Relative Strength Index (RSI) attempts to rise above the 70 percent level for the first time since April this year. As a result, Bitcoin price could fall back below $80K to retest the recent ATH gains around $73.7K.

Best Way Forward

As the cryptocurrency market enters the most volatile phase of the macro bull run, forced liquidations are expected to increase significantly. Moreover, there is a possibility of unexpected trader FOMO amidst mainstream adoption driven by institutional investors.

As#bitcoinhits new all-time highs, apply proper risk management. There will be many downturns (and upturns) ahead. Make sure you can handle them. Control your greed. Don't put all your eggs in one basket. Take it slow