Bitcoin at $BTC : A break above $120,000 could trigger a massive short squeeze, with CEX liquidation intensity potentially reaching $1.503 billion

On July 19th, according to Coinglass data, the Bitcoin price is currently facing a critical liquidation range. If Bitcoin breaks through the $120,000 mark, the cumulative short liquidation intensity on major centralized exchanges (CEX) is expected to reach $1.503 billion, and the market may experience violent fluctuations due to massive liquidations.

Short Squeeze Wave May Intensify Upward Momentum

Liquidation data shows that there is a dense risk of short position liquidation near $120,000. Once the price breaks through this level, a large number of short orders being forcibly closed will lead to a short squeeze, where shorts are forced to buy Bitcoin to cover their positions, further pushing up the price. Coinglass pointed out that the liquidation chart does not accurately show the number of contracts to be liquidated, but rather reflects the liquidation intensity in different price ranges. A higher 'liquidation bar' means that the price level may trigger a stronger market reaction.

Intense Long-Short Game, Key Support Levels Need Attention

At the same time, if Bitcoin falls below $116,000, the market may face $1.310 billion in long liquidation pressure, leading to a short-term correction. The current Bitcoin price is oscillating within a key range, and the long and short sides are playing fiercely. Any breakout in either direction may amplify market volatility due to liquidity waves.

Market Sentiment and Liquidity Risk

Analysts remind that high-leverage contract trading is prone to triggering chain liquidations in extreme market conditions, and investors need to be wary of the risks brought by violent price fluctuations. If Bitcoin successfully breaks through $120,000, a wave of short liquidations may become a catalyst for a new round of rallies, but if it fails to gain a foothold, the market may face short-term selling pressure.