Bitcoin is knocking on $116,000, and $4.8 billion in short positions are about to get liquidated. That’s not hype — it’s leverage math.Here’s what’s happening: traders who bet against BTC (short sellers) are sitting on highly leveraged positions. If price hits $116K, exchanges will force-close these trades, triggering a cascade of buy orders.
One short gets liquidated, buys BTC to cover, pushes price higher — and suddenly the next short is underwater. Rinse, repeat. This is a short squeeze.$4.8B in forced buying could ignite a violent breakout. We’ve seen it before: $1B wiped out in a day in July 2025 when BTC hit $118K. History rhymes.
Bulls are watching. Bears are sweating.
The fuse is lit.Not financial advice. Trade responsibly.
