Further growth of Bitcoin (BTC) could put bears in quite a difficult situation, as on May 2, the main cryptocurrency gained 0.4% and rose to the level of $97,800.
According to the market analytics platform CoinGlass, short positions in Bitcoin amounting to about $3.36 billion could be liquidated if the BTC price reaches the mark of $100,000.
Map of position liquidation with Bitcoin on exchanges. Source: CoinGlass
What key levels should be watched when Bitcoin approaches the significant testing threshold of $100,000? Currently, the next resistance level is at $97,900, and a rise to it is almost inevitable unless a major bearish catalyst appears in the short term.
The current situation is more a reflection of trading using borrowed funds rather than a large-scale miscalculation by bearish traders.
If an equivalent downward movement occurred, the scale of long position liquidations for Bitcoin would be similar. In other words, a drop of 3.07% that would lead BTC to $93,973 would liquidate approximately the same amount of capital — $3.36 billion.