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. Currently trading at $83,000, the bearish pressure is intensifying as investors react negatively to recent announcements regarding the strategic bitcoin reserve in the United States.

The bitcoin reserve disappoints and exacerbates the drop in BTC!

President Donald Trump signed on March 7, 2025 a decree for the creation of a bitcoin reserve from cryptocurrencies seized in criminal cases, rather than an active purchase on the market. This announcement disappointed investors who hoped that the U.S. government would adopt a more aggressive BTC accumulation policy.

According to analysts, this lack of direct investment has caused a negative short-term reaction and a pullback in the price of BTC. Investors had anticipated a federal accumulation of bitcoin that could have signaled strong institutional support and driven prices up. However, the decision to rely solely on existing holdings has cooled these expectations, leading to the current decline in bitcoin.

Consequently, 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.

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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.