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According to new data from CoinGlass, traders of Bitcoin are preparing for a possible $3,000,000,000 liquidation event that could occur if BTC rises to about $112,600. A massive cluster of short positions is accumulating just above the current market level, according to the most recent liquidation map. If bulls are able to drive prices even higher, this could lead to a violent short squeeze.
Where can it start?
Bitcoin is currently trading close to $109,200 after rising from support at $108,000 and encountering resistance below the $112,000-$114,000 range. This region is in line with the daily chart’s 100-day and 200-day moving averages, which are technical levels that have frequently served as turning points this year. Cascading liquidations could spur a quick move toward $115,000-$118,000 if Bitcoin clearly breaks above them, propelled by forced short position closures.
Leveraged traders have placed large bets against Bitcoin in this range, according to the liquidation heatmap, creating a liquidity gap that may increase upside volatility. A classic setup for a short squeeze scenario, short positions automatically buy back Bitcoin to cover losses as they are liquidated, thus accelerating the rally.
The 200-day moving average and Bitcoin’s solid base at $108,000 are serving as short-term supports on the downside. Before making another attempt at a breakout, a retracement toward $106,000 or even $102,000 may occur if these levels fail. The market still has a lot of energy to move either way depending on how leverage unwinds, as indicated by the RSI’s neutrality at 45.
The larger picture heightens the tension: current on-chain data indicates consistent long-term holders’ accumulation, while derivatives markets continue to be highly leveraged — a volatile combination. All eyes are on $112,600 in the near future. Over $3,000,000,000 in short liquidations could trigger an abrupt rally, turning resistance into fuel if Bitcoin breaks that volume threshold. Whether that breakout occurs or not, one thing is certain: a significant liquidation wave may accompany Bitcoin’s next move, making the $112,000-$115,000 range the most crucial battleground in the days ahead.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team