Bitcoin is red hot again. Price reached $97,500 before dipping slightly lower to $97,000, and the markets are abuzz. Sellers anticipating Bitcoin’s upswing might be in for trouble. Figures reveal over $3 billion worth of short positions potentially being erased should Bitcoin move over the coveted $100,000 threshold. Related Reading: Bitcoin To Infinity? Venture Capitalist Says Crypto’s Value Vs. Dollar Has No Ceiling Massive Short Positions Clustered Below $100K According to Coinglass, there’s a heavy concentration of short positions across major exchanges like Binance, OKX, and Bybit between the $97K and $100K range. That cluster of bets against Bitcoin is now on shaky ground. A move past $100K could lead to a wave of liquidations totaling about $3.04 billion. If Bitcoin goes even further—to approximately $105,000—liquidations may rise to almost $3.73 billion. At the last all-time high of $109,000, the figure may reach $4 billion. Short sellers who sold the market with high leverage are most vulnerable, and the heat is on. Long Positions Cleared In Earlier Dip While shorts are currently in the crosshairs, long positions already lost some ground. In a recent dip, longs saw much of the bullish bets get washed out. The aggregate leverage that supported long positions has declined drastically, according to the red trendline of long liquidations. This leaves fewer overconfident buyers propping up the market, lessening the risk of an abrupt crash from long-side liquidation. The reset also leaves a cleaner path higher, as there is less resistance from leveraged longs attempting to hold their positions. Resistance Zone Between $96K And $98K Bitcoin is now trading within one of its largest resistance zones. On-chain indicators on IntoTheBlock indicate that an estimated 1.06 million wallets purchased approximately 750,800 BTC between the $96K and $98K regions. That’s nearly $73 billion’s worth of Bitcoin at break-even for a good number of holders. This region is significant. If Bitcoin manages to break above it, there will be less selling pressure in the way. The price may rise quicker with fewer hurdles between $98K and $100K. $3B in #Bitcoin shorts will get liquidated at $100K. Let’s send it. ???? pic.twitter.com/VKMePfQDhS — Carl Moon (@TheMoonCarl) May 2, 2025 $100K In View As Analysts Monitor The Market Closely The $100,000 level is more than a figure. It’s a psychological mark for traders, and it might be the beginning of something bigger. Crypto analyst Carl Moon responded to the situation on social media with a quick comment: “Let’s send it.” The remark captures the sentiment of most in the market. Related Reading: Strategy’s $84 Billion Bitcoin Appetite: Michael Saylor Goes All In (Again) At present, Bitcoin is probing its limits. If the bulls continue in charge, shorts may become squeezed, and the path to six figures may be nearer than it appears. Featured image from Gemini Imagen, chart from TradingView
Data shows the cryptocurrency derivatives market has suffered a lot of liquidations as Bitcoin has gone through volatility in the past day. Bitcoin Has Gone Through A Bit Of A Rollercoaster Over The Last 24 Hours Bitcoin has seen some wild price action over the past day in which it has not only set a […]
Data shows the cryptocurrency derivatives market has suffered a large amount of liquidations following Bitcoin’s rally to its new all-time high (ATH). Bitcoin Has Set A New Record Above $75,000 Today The moment Bitcoin investors have been waiting for these past few months has finally happened, as the number one cryptocurrency has set a brand […]
Bitcoin is on the verge of a historic move as it pushes toward its all-time highs, surging above the $71,000 mark just yesterday. This breakout has ignited optimism among analysts, who expect further upside in the coming weeks as the US election draws near—a period historically marked by heightened volatility and market shifts. Critical data from CryptoQuant indicates that Open Interest has reached $22.6 billion, with half of these positions held by bears. If Bitcoin continues to climb, this setup creates a high risk of short liquidations, potentially accelerating buying pressure as prices push above $71,000. Related Reading: If Dogecoin Breaks Above Key Resistance ‘We Could See A 25% Rally’ – Top Analyst As momentum builds, the next few days will determine whether BTC can sustain its uptrend or if a consolidation phase below the all-time high will continue. Investors are closely watching these price levels, as a confirmed breakout could signal new highs for Bitcoin. At the same time, a stall might suggest a need for additional consolidation before a larger move. Bitcoin Bears In Serious Trouble Bitcoin bears are now at high risk of forced liquidations as a significant level of short position liquidity hovers above the $71,000 threshold. According to top analyst and macro investor Axel Adler, this scenario could ignite a powerful rally if short positions start liquidating en masse. Creating momentum that propels BTC beyond its all-time highs. Adler shared a CryptoQuant chart on X, noting that Bitcoin Open Interest has surged to $22.6 billion, with half of these positions held by bears. In his analysis, Adler emphasizes that the current market structure is poised for a major squeeze. “There’s no need to hesitate in liquidating short positions to drive the price up,” Adler states, suggesting that a cascade of liquidations above $71,000 could act as a launchpad for Bitcoin, taking it into uncharted price discovery levels. This process, known as a “short squeeze,” occurs when overleveraged short holders are forced to close their positions, resulting in large buy orders that send prices even higher. Related Reading: Solana Bullish Pattern Holds – Crypto Analyst Sets $202 Target If this scenario unfolds, Bitcoin wouldn’t be the only one benefiting. As BTC leads the market, a rally past previous highs could signal a fresh cycle for the entire crypto space. Altcoins typically follow Bitcoin’s lead, and the spillover effect could fuel a comprehensive bull run, with new highs across multiple assets. Investors are watching closely, as such a move could renew interest and investment in the crypto market, drawing in retail and institutional capital. With BTC on the edge of price discovery, the next few days may prove pivotal in shaping the market’s direction. BTC Testing Cruial Supply Bitcoin is testing a supply zone at $71,200, brushing up against the last resistance level before reaching its all-time high. Bulls appear firmly in control, with price action signaling a likely breakout above this level in the coming days. Breaking and holding above the $70,000 mark remains critical. This psychologically significant level reinforces bullish sentiment, encouraging more buyers to enter the market. However, a temporary retracement to gather liquidity at lower demand levels would benefit Bitcoin’s uptrend. A dip toward the $69,000 level, or even down to $66,500, would still align with a bullish outlook. It could attract further interest and create a healthier base for the next rally. These areas would allow Bitcoin to gather liquidity before making a stronger push toward new highs. Related Reading: Ethereum Whale Activity Spikes To 6-Week High – Smart Money Accumulation? Traders are watching, knowing that a sustained move above $71,200 could pave the way for price discovery beyond all-time highs. A successful breakout could trigger renewed momentum across the market, sparking a broader bull run as Bitcoin leads the charge. Featured image from Dall-E, chart from TradingView
Data shows the Bitcoin Open Interest on exchanges has been heading up while the Funding Rate has turned negative recently. Bitcoin Open Interest Trend Suggests Speculators Are Back As pointed out by CryptoQuant community manager Maartunn in a new post on X, things appear to be heating up on the derivatives side of the market. There are two indicators of relevance here: Open Interest and Funding Rate. Related Reading: XRP Whales Are Depositing To Exchanges: Price To Drop Further? The first of these, the Open Interest, keeps track of the total amount of derivatives contracts related to Bitcoin, whether short or long positions, that are currently open on all exchanges. When the value of this metric goes up, it means the investors are opening up fresh positions on the market right now. As new positions generally come with an increase in the overall leverage present in the sector, this kind of trend can lead to higher volatility for the asset. On the other hand, the indicator’s value observing a decline implies investors either are closing up positions of their own volition or are getting liquidated by their platform. The coin’s price may become more stable following this trend. Now, here is a chart that shows the trend in the Bitcoin Open Interest over the past few days: As displayed in the above graph, the Bitcoin Open Interest had taken a plunge earlier as a result of the cryptocurrency’s decline towards the $58,000 level, which had induced the liquidation of a significant amount of long positions. After observing some sideways movement, the metric has been on its way back up again, suggesting investors have been opening new positions. This speculative activity can naturally lead to more volatility for the asset. In theory, such volatility can take the asset in either direction, but depending on the composition of the positions present on the derivatives market, one direction may be more probable than the other. The indicator that sheds light on the structure of the sector is the second metric of interest here: the Funding Rate. This indicator basically keeps track of the amount of periodic fee that traders on the derivatives market are exchanging between each other. From the chart, it’s visible that the Bitcoin Funding Rate has been negative during this recent Open Interest increase. When the metric has a negative value, it means the short holders are paying a premium to the longs in order to hold onto their positions, so the new positions that have appeared in the sector recently would be short ones. Related Reading: Polygon On-Chain Activity Lights Up: MATIC Reversal Incoming? Because of the short-heavy market, it’s more likely that these investors betting on a bearish outcome get caught up in a mass liquidation event, thus taking Bitcoin is a more bullish direction. It only remains to be seen, though, as to how BTC’s price action would play out in the coming days. BTC Price Bitcoin had seen a brief rebound above $61,000 yesterday, but the coin appears to be back down under $60,000 today. Featured image from Dall-E, Coinalyze.net, chart from TradingView.com
Data shows the Bitcoin funding rates on exchanges have turned negative, a sign that the shorts have now become the dominant force in the market. Bitcoin Funding Rates Have Turned Negative After Market Crash As pointed out by an analyst in a CryptoQuant Quicktake post, the Bitcoin funding rates have seen a sharp decline recently. The “funding rate” refers to a metric that keeps track of the periodic fee that derivatives contract holders are currently exchanging with each other. When the value of this indicator is positive, it means the long investors are paying a premium to the short ones in order to hold onto their positions. Such a trend implies a bullish sentiment is shared by the majority in the sector. Related Reading: Chainlink (LINK) Recovers 20% As Network Lights Up With Activity On the other hand, the metric being negative implies a bearish mentality could be the dominant one in the market as the short holders outweigh the longs. Now, here is a chart that shows the trend in this Bitcoin indicator for all exchanges over the past few months: As displayed in the above graph, the Bitcoin funding rate had been positive throughout the year 2024, save for a couple of small dips into the negative region, until this latest crash, which finally took the indicator to notable red values. The earlier positive values were naturally due to the fact that the market had a bullish atmosphere to it, so the average investor was trying to bet on the price to rise. From the graph, it’s visible that this positive sentiment was the strongest during the rally to the all-time high (ATH) price fueled by the spot exchange-traded fund (ETF) demand. During the consolidation period that had followed this rally, BTC had seen a couple of notable drawdowns, but they weren’t enough to shake off the bullish mood. The recent sharp crash, though, appears to have finally caused investors to have a bearish outlook on the cryptocurrency. The Bitcoin crash had resulted in a huge amount of long liquidations in the market, triggering what’s known as a squeeze. In a squeeze event, a sharp swing in the price causes mass liquidations, which in turn fuels the price move further. This then unleashes a cascade of more liquidations. Since the latest such event involved the longs, it would be called a long squeeze. In general, an event of this kind is more likely to affect the side of the derivatives market that is more dominant. As this power balance has shifted towards the shorts now, it’s possible that the market could instead see a short squeeze in the near future. Related Reading: Is Bitcoin In A Bear Market Now? Here’s What On-Chain Data Suggests Naturally, it’s not necessary that a short squeeze should take place, but if the price ends up witnessing some volatility, it’s possible it may end up punishing the short-heavy market. BTC Price Bitcoin has been steadily making recovery from the crash as its price has now climbed back to $57,500. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
Over the past few days, Bitcoin has seen quite a notable rebound in its price, rising from as low as the $53,000 level last week to trading as high as above $66,000 in the early hours of Wednesday before now retracing to a current trading price of $64,433. This bullish price performance has been the downfall of approximately 50,436 traders in the crypto market today. Particularly, according to data from Coinglass, this number of traders has seen massive liquidations, bringing the current total liquidations to $145.58 million. Bitcoin traders felt the brunt of this total liquidation, seeing roughly $46.22 million shared evenly between short and long positions, indicating the asset’s mixed trajectory in the past day alone. Related Reading: Bitcoin Dominates as Crypto Funds Attract $1.44 Billion in Fresh Capital, Rally To Begin? Bitcoin: Bigger Liquidations Incoming While recent trading activities have triggered millions of dollars in liquidations, further data shows that this scenario could escalate dramatically, turning into billions if Bitcoin continues its ascent towards record highs, breaching a notable mark. Particularly, as reported by MartyParty, a prominent crypto enthusiast in the community, should Bitcoin’s price hit $72,400, the market would feel the impact, with nearly $19 billion in Bitcoin short positions poised for liquidation at this price point. Marty Party reported this on Elon Musk’s social media platform X, citing data from Coinglass. Concluding this disclosure, the crypto enthusiast noted: “Never bet against technology.” How Long For This Liquidation To Occur? While the $72,400 price mark might seem like a long stretch from the current market price, BTC might not take that long to get to this mark, given the current fundamentals. For instance, the market might be drawn quicker to this mark as this is where the liquidity lies to fuel its current trend. Aside from that, no bears are in sight to slow the asset’s rally from getting there in the short term. First of all, the German government has sold off all of its BTC holdings of roughly 49,858 BTC with a current balance below $500, according to data from Arkham Intelligence. Notably, the current balance of approximately $427 worth of BTC is the cumulative sats (small units of BTC) donated from different wallet addresses. Furthermore, according to recent data from CryptoQuant, 36% of Mt. Gox BTC has been distributed to creditors. However, despite this distribution, BTC’s price is yet to see any notable correction, which suggests two things: that the creditors are not selling, and even if they are, the Bitcoin market is absorbing it real quickly as evident in the slight stabilization of BTC’s price. Related Reading: Bitcoin Price On The Rise: Is The $70K Mark Within Reach? These major sell-offs by the German government and Mt. Gox, once considered major threats to the crypto market, now seem to have minimal impact, indicating that no significant bearish obstacles prevent Bitcoin from surging to the $72,400 mark, creating a short squeeze. Featured image created with DALL-E, Chart from TradingView
Bitcoin’s massive surge upward saw more than $268 million in shorts liquidated throughout the wider crypto market.
Short sellers have lost more than $6 billion trying to bet against crypto stocks in 2023.