- Bitcoin shorts face $11.5B in liquidation risk as bulls hold strong and global liquidity trends shift in favor of crypto assets.
- Exchange data shows short squeeze pressure intensifying while rising liquidity fuels expectations of a sustained bull cycle into 2026.
- Binance leads in liquidation volume as market resilience and global monetary shifts support Bitcoin’s march toward $111.9K highs.
Bitcoin is flashing warning signs for bears as $11.5 billion in shorts risk liquidation if the price touches $111.9K. Currently, BTC trades at $104,755, and liquidation pressures are mounting. The seven-day exchange liquidation map shows critical market activity on Binance, OKX, and Bybit. Short liquidations dominate the landscape, highlighting the aggressive positioning against Bitcoin’s rally. Yet, bulls appear to hold the upper hand as price action stays stable.
Source: X
Cumulative short liquidation leverage, shown by a rising teal line, peaked at $14.67 billion. This steady rise signals relentless pressure on traders betting against Bitcoin. Consequently, forced buying activity is supporting price momentum. Meanwhile, long liquidations dropped sharply. The red line reflects a notable decrease in forced selling. Hence, bulls seem to be managing their positions more effectively as Bitcoin maintains its strength.
Binance Leads Exchange Liquidations
Binance remains the key player in this leverage shakeout. Orange bars show it processed the highest liquidation volumes over the week. OKX and Bybit followed, with visible yet smaller contributions. Additionally, a red vertical dashed line marks a turning point. Trading volume surged across all exchanges during this price level. That moment sparked new patterns in market behavior.
Despite increased liquidation activity, Bitcoin’s price stayed resilient. This signals strong demand and reduced sell-side pressure. Bears struggled as their short positions were unwound at unfavorable levels. This scenario points to a brewing short squeeze. Significantly, the absence of major price drops amid liquidations shows a solid bullish undertone.
Liquidity Fueling the Next Bull Cycle
Global liquidity is now rising again. According to Michael Howell and Raoul Pal, this shift could reignite the crypto bull cycle. Howell highlights structural liquidity trends fueled by U.S. Treasury drawdowns and China’s monetary easing. Moreover, yuan devaluation against gold signals deeper changes. Pal adds that crypto assets react fast to liquidity changes. He believes we are entering a high-growth “banana zone.”
Consequently, market cap projections exceed $10 trillion by 2026. However, continued liquidity expansion remains key. Any rapid tightening by the Fed or inflation resurgence could reverse gains. For now, rising liquidity and leverage shakeouts could spark explosive momentum for Bitcoin and broader crypto markets.
