If Bitcoin climbs by 10% from its present price, it could liquidate about $15 billion in short positions.
Negative funding rates indicate growing bearish sentiment and potential for a short squeeze.
Liquidation clusters signal increased volatility, with a major BTC move likely within the next week.
Bitcoin appears to be on the verge of a major price movement, according to recent data from exchange liquidation maps. As the price hovers around $105,357, analysts are closely monitoring the imbalance between short and long liquidation clusters, which could set the stage for a sharp directional shift. The data points to significant open interest on both sides of the market, indicating that whichever direction BTC takes next could result in a large volume of forced liquidations.
Massive Short Exposure Points to Upside Risk
The liquidation chart indicates that a 10% price increase in Bitcoin would liquidate approximately $15.11 billion of short positions. This is indicative of traders shorting aggressively against Bitcoin's recent price movement, with extravagant short leverage building up over the past few days.
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Importantly, the funding rate for BTC turned negative yesterday, signaling that short positions now dominate perpetual futures contracts. This often occurs when traders are heavily leaning bearish, potentially setting up conditions for a short squeeze if price pressure builds on the upside. The negative funding also reflects a market sentiment shift that could be a contrarian indicator in favor of bulls.
Downside Still Carries Risk, But Less Liquidation Impact
On the other hand, a 10% decline from the current level would liquidate around $9.58 billion in long positions. While this is a significant number, it falls short of the short-side liquidation volume. This imbalance suggests that short positions are currently more crowded and vulnerable to liquidation should prices rise unexpectedly.
Support has been identified near $104,848, while resistance sits at $105,891. Price movement within this range remains tight for now, but the growing liquidation pressure implies that this consolidation may not last long.
Rising Short Liquidations Signal Imminent Bitcoin Breakout
The data shows cumulative long liquidations have been steadily declining, while cumulative short liquidations are rising, particularly concentrated around the $106K to $110K range. If Bitcoin were to breach the $106K level, it could trigger a cascade of short liquidations, amplifying the upward move.
This aligns with broader market behavior where high-leverage positioning often precedes volatility. The sharp increase in liquidations on platforms like Binance, OKX, and Bybit further confirms heightened market fragility.
Market watchers are increasingly anticipating a large move as early as next week. Should bullish momentum materialize, Bitcoin could potentially test or even surpass the $109K–$110K range, where the highest cluster of short liquidations currently lies.
With liquidation pressure mounting on both sides and funding dynamics favoring shorts, Bitcoin’s current consolidation appears to be the calm before a significant move.
