HBAR faces a liquidation risk of $35 million due to Bitcoin volatility

The bearish trend of Hedera (HBAR) seems to have reached a saturation point and is showing potential bounce back signals.

At $0.218, HBAR is trying to stabilize after recent falls. This bounce back could trigger large-scale liquidations in the market, creating both opportunities and risks for traders.

HBAR traders should be worried

The liquidation map shows that over 35 million dollars in Short positions could be wiped out if HBAR rises to the level of 0.23 dollars. This development would lead to a large-scale Short Squeeze, potentially driving further bullish momentum across the market. This will be an opportunity for HBAR to extend its bounce back.

For traders, HBAR surpassing the $0.23 mark signifies stronger volatility. Although liquidations will fuel the upward trend, this is also an important price range.

If successful in breaking this level, new capital may flow in as optimistic investors will look for ways to capitalize on the uptrend.

HBAR Liquidation Map | Source: CoinglassOn a broader scale, the trajectory of HBAR is closely tied to Bitcoin. This altcoin has a correlation coefficient of 0.8 with BTC, indicating a very tight price relationship.

As long as Bitcoin can maintain support above $110,000, the price of HBAR is likely to benefit from the positive spillover effect.

This correlation also helps HBAR resist bearish risks. When Bitcoin stabilizes in the six-figure range, Hedera can take advantage of this momentum to test higher resistance levels. The trend of BTC will play a crucial role in determining whether HBAR can sustain its bounce back or continue to move sideways.

The correlation of HBAR with Bitcoin | Source: TradingView## The price of HBAR is facing resistance

HBAR is currently trading at a resistance level of $0.218. This barrier has proven difficult to overcome in recent days, but a successful breakout could help HBAR bounce back towards higher targets.

The next important resistance level is at $0.23. If HBAR hits this level, over $35 million in Short positions could be liquidated. The Short Squeeze scenario has the potential to push the price higher, towards the $0.244 range.

HBAR Price Analysis | Source: TradingViewHowever, if the upward momentum slows down, HBAR could consolidate in the range of $0.218 – $0.205. This sideways movement will invalidate the short-term bullish outlook and delay the breakout potential, making HBAR susceptible to a prolonged stagnation.

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