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Bitcoin's price seems to be steadily rising during today's session, but there is some pressure building just above the current levels.
As reported by analyst Ali Martinez, if BTC goes to $86,900, it could trigger a major liquidation event, as there are more than $600 million in short positions exposed at this crucial price point.
This is not just some random number. It represents traders who are highly leveraged — many of whom are sitting on 50x to 100x positions — and are now dangerously close to the edge. The total short liquidation leverage right now is $615.42 million, with $1.51 million at 50x and $7.36 million at 100x in particular.
At press time, BTC is around $83,950, and although it would need to rise about 3.5% to reach $86,900, the imbalance in positioning is abnormal.
If Bitcoin hits that level, we are probably looking at a short squeeze in that area — the kind of move that can really pick up the pace through thin liquidity zones, forcing people to cover their shorts in real time.
Looking at the big picture, BTC has been ranging, but the overall trend is starting to lean bullish again. If you look at the daily chart, you will see a slow, steady recovery after a pretty bumpy March and April. There is no clear breakout yet, but the potential setup is there.
But, and it is a major but, nothing is guaranteed. Everyone can see these liquidation levels, including whales, algorithms and bots. If the $86,900 level becomes a magnet, expect volatility to spike, possibly triggering reflexive price action on both sides of the book.
Vladislav Sopov