Bitcoin Nears Critical $84K Level: Will Liquidation Risks Emerge Amid Weakened Buyer Momentum?

• Bitcoin’s recent price fluctuations are raising alarms among traders as it approaches a critical threshold that could lead to significant market shifts.

• With increasing pressure at the $84,000 mark, market analysts are closely monitoring buyer behavior and technical indicators for potential sell-off triggers.

• “If prices dip below this level, market makers may accelerate the move by exploiting trapped longs,” stated a source from COINOTAG.

Bitcoin approaches a critical $84K support level amidst rising selling pressures, with traders on edge as market dynamics shift. Stay informed!

Warning signs on the horizon for Bitcoin

Recent data from Alphractal indicates that Bitcoin’s Open Interest is rising, along with increased inflows into exchanges. This trend suggests a heightened liquidation risk as traders increase their leverage surrounding the recent price rallies.

Source: Alphractal X

In examining the chart, it is evident that Bitcoin’s price surged past $88,000 before losing momentum. Many traders entered long positions in hopes of further price increases, leading to a significant buildup of leveraged positions around this price point.

Buyers showed up—but then backed off

As Bitcoin’s price stagnated above $88K, a falling Net Delta signaled that buyers were losing their grip, even with a consistent commitment to long positions. A sharp price reversal below the crucial $84,000 level would ignite a battleground dynamic for new and existing traders.

Many of these traders, who entered at or above $88K, face potential liquidation if the price breaches this critical support level. This $84K zone, characterized by a hefty concentration of long positions, serves as a dual-purpose point: technical support and a potential liquidation trigger.

A breakdown below this level could instigate significant forced selling, primarily impacting those with leveraged long positions, while benefiting short sellers positioned earlier in the rally.

Selling signals are creeping in

Concurrently, data from CryptoQuant reveals a surge in Bitcoin transfers to exchanges this March, a historically reliable indicator of impending selling activity.

Source: CryptoQuant

From January to March 2025, Bitcoin fluctuated between a high of $105,000 and $86,911, with marked inflow spikes correlating to increased volatility. Notably, 31,152 BTC moved to exchanges on March 3rd when Bitcoin was priced around $84,311, underscoring the critical nature of the $84K region.

By March 27, inflows reduced significantly to just 10,053 BTC, hinting at trader hesitation as optimism wanes. An inability to push through higher price points could trigger additional inflows as traders react to falling prices.

Source: CryptoQuant

Outflows also demonstrated a significant drop from 86,230 BTC in February to 10,186 BTC by March 27, indicating a notable decline in accumulation and an increasing caution among market participants.

If long-term holders continue to step back from their positions, the bullish support might be gradually diminishing.

Bitcoin HODLers hit the brakes

Data from Glassnode illustrates an upward trend in Bitcoin’s Realized Price, which climbed from $33,149 in November 2024 to $43,696 in March 2025.

Source: Glassnode

However, while the Realized Price increased, the MVRV Z-Score fell from 3.42 to 1.99 over the same period, indicating a reduction in speculative enthusiasm rather than a complete market capitulation. Historically, scores above 5 signal market tops, whereas a score near 2 suggests mild overvaluation.

This is the line—who blinks first?

Currently, Bitcoin is trading around $86,000 and remains above the $84,000 support level. Exchange data depicts cautious accumulation, while derivatives indicate a significant long exposure among traders.

Nonetheless, on-chain metrics point to a tapering momentum. Should prices dip below that $84,000 threshold, a wave of liquidations could happen, favoring those who took short positions at higher price levels.

Alternatively, a strong defense of this support level could help preserve the bullish trend of higher lows, with traders eagerly anticipating the next significant market movement.