- Bitcoin has strong liquidation zones near $85,000 and $95,000, posing key risks.
- Moving beyond the $90,000 price zone could trigger massive liquidations for further upward momentum.
- Long liquidations may occur if Bitcoin drops below $85,000, causing a swift decline.
The liquidation map for Bitcoin indicates highly leveraged activities, with nearly $3 billion in short positions ready for liquidation if the price hits $95,000. Currently, the price is at $86,255, just below a high liquidity cluster above the $90,000 threshold. The chart displays a robust buildup of long liquidations in the $85,000 to $87,000 range, while cumulative short liquidations start accelerating above $92,000. Additional indicators suggest that breaking through these resistance levels will result in a short squeeze, forcing massive liquidations and driving prices upward.
Binance and Bybit: The Largest Liquidation Zones
The liquidation map shows increasing leverage activities, with Binance and Bybit holding the largest concentration of liquidations. Binance exhibits a larger share of long liquidations within the $84,000 to $87,000 zone, while Bybit has a substantial volume of short liquidations stacked above $92,000. The cumulative long liquidation leverage, depicted by the red curve, is on the decline as Bitcoin maintains levels above $86,000. In contrast, the cumulative short liquidation leverage, illustrated in green, is rising sharply toward the $95,000 mark, indicating a potential squeeze if bullish forces prevail.
If the Bitcoin rally continues with $90,000 in sight, liquidity absorption may trigger a rush to liquidate short positions. Concentrated liquidation around $95,000 suggests that a rally beyond that point could lead to cascading liquidations, pushing BTC even higher. The rise in cumulative short liquidation leverage reveals that traders are primarily positioned for a negative move, exposing Bitcoin to a substantial reversal risk. Nevertheless, the presence of stacked long liquidations between $81,000 and $85,000 means any rejection from this level could initiate a severe retracement.
High Volatility Expected as Bitcoin Approaches Key Levels
As Bitcoin nears these liquidity-rich zones, market participants are closely monitoring these areas. If the price attempts to break above $90,000, a squeeze on short positions could propel rapid gains. Conversely, failure to breach resistance in this area may lead to long liquidations dragging Bitcoin below $85,000. With $3 billion in short positions poised for liquidation, the upcoming days may witness significant volatility as traders brace for a decisive move.
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