Bitcoin witnessed another major short liquidation event on Binance, with liquidations exceeding $300 million for the second time in just one week.
The Binance liquidation delta chart clearly shows a towering red bar of short liquidations surpassing the $300 million mark.
This follows a similar liquidation magnitude earlier in last 7 days.
Such liquidation spikes are typically forced buy-ins, where exchanges close short positions at market prices due to margin calls.
This action inadvertently adds upward pressure to BTC’s price, creating sharp rallies fueled not by organic demand, but by reactive covering of losing trades.
The 100–1k BTC cohort enters negative territory for the first time since April 2024:
* While short sellers were getting squeezed, on-chain data tells a different story among more strategic players. On May 13, data accumulation trend score reveals that holders in the 100 to 1,000 BTC range — traditionally mid-sized whales — have flipped from accumulation to distribution, with a net flow of -40.3K BTC.
* This is particularly significant as it's the first time in months this cohort has entered net negative territory.
* Historically, this group is known for tactically managing exposure, often selling into strength or trimming positions as euphoria rises and retail participation intensifies.
Conclusion
The market is at a critical juncture. The second $300M+ short liquidation within a week confirms bearish positioning.
At the same time, mid-tier whales are taking chips off the table, which could hint at a short-term peak forming.
Written by Amr Taha
