LeverageMap

📊 BITCOIN LIQUIDATION MAP: SHORT SQUEEZE RISK LOOMING

Data from Coinglass’s 7-day liquidation heatmap shows that the market is approaching a highly sensitive zone — where a large cluster of short-leveraged positions are waiting to be liquidated, potentially triggering sharp volatility if prices continue to rise.

🔻 Long-side pressure is cleared:

The red line, representing cumulative long liquidation leverage, has been declining steadily from the $106K to $120K range. This suggests that most weak long positions have already been flushed out, creating a more stable price base below.

🔵 Shorts are piling up at the top:

The light blue line — showing cumulative short liquidation leverage — is climbing sharply from the $122K level and above. Volume bars also show a dense accumulation of short positions around current price levels, particularly on Bybit and Binance.

💥 Short squeeze trigger in sight:

If BTC continues upward and breaks through the $123K–$124K region, a short squeeze is highly likely. Forced closures of short positions could accelerate price momentum, pushing Bitcoin higher in a fast, cascading move.

🛑 Important note on interpretation:

The colored bars do not show past liquidations — they indicate open leveraged positions that will be liquidated if price hits those levels. When a bar spikes above the leverage curve, it marks a high-risk zone for rapid market moves.

CONCLUSION:

The market has cleared out weak longs, and now sits just below a vulnerable zone packed with short positions. Traders should avoid shorting near this level unless clear reversal signals emerge. If bullish momentum persists, the next move could be a fast and violent squeeze.

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