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According to new data from CoinGlass, traders of Bitcoin they are preparing for a possible $3,000,000,000 liquidation event that could happen if BTC reaches around $112,600. A massive cluster of short positions is accumulating just above the current market level, according to the most recent liquidation chart. If the bulls are able to drive prices even higher, this could lead to a violent short squeeze.
Where can you start?
Bitcoin it is currently trading near $109,200 after rising from support at $108,000 and meeting resistance below $112,000-$114,000. This region is in line with the 100-day average and 200-day average of the daily chart, which are technical levels that have often served as turning points this year. Cascading liquidations could stimulate a quick move towards $115,000-$118,000 if Bitcoin breaks clear above them, propelled by forced closings of short positions.
Leverage traders have placed large bets against Bitcoin in this range, according to the liquidation heat map, creating a liquidity gap that can increase upside volatility. A classic setup for a short squeeze scenario, short positions automatically buy Bitcoin to cover losses as they are liquidated, thus accelerating the rally.
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The 200-day moving average and Bitcoin’s solid base at $108,000 serve as short-term supports on the upside. Before making another breakout attempt, a retracement towards $106,000 or even $102,000 may occur if these levels fail. The market still has a lot of energy to move either way, depending on how the leverage is stretched, as indicated by the neutrality of the RSI at 45.
The bigger picture increases the tension: the current data on the chain indicates the consistent accumulation of long-term holders, while the derivatives markets continue to be highly leveraged – a volatile combination. All eyes are on $112,600 in the near future. More than $3,000,000,000 in short liquidations could trigger a sudden rally, turning resistance into fuel if Bitcoin break that volume threshold. Whether it happens or not, one thing is certain: a significant liquidation wave can accompany Bitcoin’s next move, making the $112,000-$115,000 range the most crucial battleground in the coming days.
