Bitcoin’s price has rebounded to $97K, raising liquidation risks for $3B in short positions above $100K. Major exchanges like Bybit and Binance see this as a key area that could trigger substantial losses for short sellers. Long positions have diminished, leaving room for a potential upside breakout. Analysts predict Bitcoin could reach $120K-$150K soon, emphasizing a critical resistance zone between $96K and $98K.
Bitcoin is currently seeing a surge in bullish momentum, with its price bouncing back to approximately $97,000 after dipping to about $96,000 earlier in the day. This increase has raised concerns among traders with short positions, especially as data from Coinglass indicates that upwards of $3 billion worth of these positions could be liquidated if Bitcoin crosses the critical $100,000 threshold.
The situation unveils a significant number of short positions on leading exchanges like Bybit, OKX, and Binance, focused between the $97,000 and $100,000 mark. As prices rise, the total liquidation potential is edging toward $4 billion, exposing those betting against Bitcoin to considerable risk. If Bitcoin surges to $105,000, liquidations could hit nearly $3.73 billion, and around its all-time high of almost $109,000, the figure could soar to about $4 billion.
Moreover, long positions had been reduced significantly during recent price corrections. The downward trend in cumulative long liquidation leverage suggests that the market may be primed for a breakout due to there being less resistance from over-leveraged bullish positions. Crypto analyst Carl Moon recently remarked on X, “Let’s send it,” reflecting a growing expectation for a short squeeze that could potentially push Bitcoin well past six figures.
In terms of resistance, Bitcoin is testing one of its critical zones. Data from IntoTheBlock indicates that in the $96,000 to $98,000 area, roughly 1.06 million addresses hold 750,800 BTC valued at around $73 billion—this represents Bitcoin’s largest supply region. Overcoming this barrier could open up opportunities, particularly at the anticipated $100,000 level.
However, it’s also essential to note that if the bearish market participants manage to gain the upper hand, there’s a risk of Bitcoin dropping down to the $93,000 or even $82,000 levels, where we could see significant buying activity re-emerging. Traders are keeping a close watch on these figures: Support levels are noted at $93,700 and $82,000, with resistance identified at $97,600.
Bitcoin’s flirtation with all-time highs has many traders eager for the psychological milestone of $100,000 and even beyond it. Notably, market analyst Peter Brandt suggested just recently that Bitcoin could potentially climb to between $120,000 and $150,000 within months—just before the onset of a new bear market cycle.
\nDisclaimer: This article is intended solely for informational purposes and should not be taken as financial advice. The opinions expressed herein may reflect the writer’s views and do not represent those of The Crypto Basic. Readers are strongly encouraged to conduct their own research before making investment choices. The Crypto Basic disclaims any liability for financial losses incurred.
