“$57,000 is a key region to watch. If Bitcoin trades down into that area, we could see a massive wave of long liquidations,” Joao Wedson, CEO of crypto analytics platform Alphractal, said.

The risk is amplified by thin trading volumes. As CoinDesk reported Monday, the number of active contracts is unusually large relative to trading volume. That combination matters a scenario, where a large batch of leveraged longs get liquidated and thin order books make it harder to absorb those liquidations at stable prices. The result could a sharper, faster drop rather than a orderly pullback.

The question is whether BTC will fall to $57,000.

Past crypto bear cycles have seen severe crashes of 76% to 84%. The latest one, which began at highs…