IFBitcoin approaches $100K, volatility is likely to spike due to several key factors:
1. Psychological Resistance:
$100K is a major round number, drawing attention from retail and institutional traders alike. Expect large order flows and heavy trading volume.
2. Liquidation Cascades:
With $3B in shorts at risk, even a small push above $100K can trigger automatic liquidations, causing rapid price surges — a classic short squeeze.
3. High Leverage:
Many short positions are on margin. As price rises, margin calls and liquidations can amplify volatility.
4. Market Maker Activity:
As price nears $100K, market makers may widen spreads or hedge aggressively, contributing to price swings.
5. Media Attention:
Headlines around BTC hitting $100K will attract more FOMO-driven entries, adding fuel to volatility.
