In recent market activity, Bitcoin witnessed two significant short liquidation events on Binance, exposing late sellers and over-leveraged traders who misjudged the prevailing bullish trend.

đŸ’č First Event: $97K Short Liquidation Cluster

As shown in the liquidation delta chart, the first major liquidation spike near $97K wiped out over $360 million in short positions. This move targeted a dense cluster of late sellers visible on the liquidation heatmap—many of whom were betting on a local top after Bitcoin's prior rally.

Instead, price pierced the $97K level, triggering cascading liquidations. The volatility forced short-sellers to cover at a loss or get liquidated outright, fueling further upside momentum.

đŸ’č Second Event: $101K Liquidation Cluster

Shortly after recovering from the $97K sweep, Bitcoin consolidated just below $101K. This pause likely lured more bears into the market, hoping for a double-top. Instead, the market exploded through the 101K liquidity pocket, liquidating nearly $240 million in shorts, as confirmed by the liquidation delta data.

This second wave of liquidations created a strong breakout and sent BTC surging toward $104K.

đŸ’„đŸ”„ liquidation heatmap shows both the $97K and $101K zones as high-liquidity clusters, confirming they were prime targets for liquidation runs.

📈 Binance funding rate chart provides further confirmation of this event’s significance. Prior to the liquidation sweeps, funding rates were negative, reflecting bearish sentiment and traders paying to hold short positions.

Following the liquidation cascade, funding flipped dramatically positive rising above 0.01%. This shift signals that the short-dominated market structure had been flipped, with bullish momentum now in control and demand for long positions increasing.

Written by Amr Taha

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