Bitcoin Liquidation Zones

• Bitcoin has strong liquidation zones near $85,000 and $95,000, posing key risks.
• Moving beyond the $90,000 zone could trigger massive liquidations for upward movement.
• Long liquidations may occur if Bitcoin drops below $85,000, causing a rapid decline.

The liquidation map shows highly leveraged activities, with nearly $3 billion in short positions waiting to be liquidated if the price reaches $95,000. Currently, the price stands at $86,255, just under a high liquidity cluster above $90,000. The chart indicates a strong buildup of long liquidations in the $85,000 to $87,000 range, while short liquidations start to accelerate above $92,000. Additional indicators suggest that breaking these resistance areas could trigger a short squeeze, forcing massive liquidations and pushing prices up.

> $TEM pic.twitter.com/nHCzw0YBpW
> — BigMike7335 (@Michael_EWpro) March 8, 2025

Binance and Bybit: The Largest Liquidation Zones

The liquidation map highlights increasing leverage activities, with Binance and Bybit hosting the largest concentration of liquidations. Binance accounts for a larger share of long liquidations in the $84,000 to $87,000 zone, while Bybit holds a significant volume of short liquidations above $92,000. The cumulative long liquidation leverage (depicted by the red curve) is decreasing as Bitcoin remains above $86,000. On the contrary, cumulative short liquidation leverage (shown in green) is rising sharply towards the $95,000 mark, indicating a possible squeeze if bullish forces gain momentum.

If the Bitcoin rally remains strong with $90,000 in sight, liquidity absorption could trigger a surge to liquidate short positions. Concentrated liquidations around $95,000 imply that a rally beyond this threshold would initiate cascading liquidations, pushing BTC even higher. An increase in cumulative short liquidation leverage shows that traders predominantly expect a decline, potentially exposing Bitcoin to a hard reversal. Moreover, stacked long liquidations between $81,000 and $85,000 indicate that a rejection from this zone may lead to a significant retracement.

High Volatility Expected as Bitcoin Approaches Key Levels

As Bitcoin nears these liquidity-rich zones, market participants are closely monitoring these levels. A price push past $90,000 could result in a squeeze on short positions, facilitating rapid gains. Conversely, if the price fails to break resistance in this region, long liquidations could pull Bitcoin below $85,000. With $3 billion in short positions ready for liquidation, the upcoming days may see high volatility as traders prepare for critical movements.