Bitcoin, the world’s largest cryptocurrency, is facing a critical moment as it risks over $1 billion in long liquidations below the $85,000 mark. This comes as the digital asset experiences significant volatility, which could potentially lead to a retest of the $81,000 support level.

The recent surge in Bitcoin’s price has been met with both excitement and caution from investors. While many are optimistic about the potential for further gains, others are wary of a potential correction. And with the current market conditions, it seems that the latter may have a valid reason to be concerned.

According to data from Bybt, over $1 billion worth of long positions have been liquidated in the past 24 hours alone. This means that traders who were betting on Bitcoin’s price to continue rising have been forced to close their positions at a loss. This is a significant amount, even for a market as volatile as cryptocurrency.

The liquidations have been triggered by a sharp drop in Bitcoin’s price, which fell from its recent high of $88,000 to around $82,000. This sudden decline has caused panic among investors, with many fearing that it could be the start of a larger correction.

However, some analysts believe that this pullback is a healthy correction and could actually be a good buying opportunity for those looking to enter the market. They argue that Bitcoin has been on a strong uptrend and a temporary dip is to be expected.

But regardless of whether this is a correction or the start of a larger downtrend, one thing is clear – Bitcoin’s volatility is back. And with it, the potential for significant gains or losses. As the market continues to navigate through these uncertain times, it’s important for investors to stay vigilant and make informed decisions.