- Bitcoin faces $8B in short pressure as cascading liquidations drive a breakout past $116K, signaling aggressive bullish momentum.
- A massive short squeeze between $103K and $105K flipped sentiment as BTC cleared key resistance with Bybit leading in liquidation volume.
- Despite declining volume, Bitcoin’s breakout from a symmetrical triangle suggests continuation potential toward new all-time highs.
Bitcoin is charging through a volatile zone, backed by a liquidation storm and breakout momentum. Liquidity maps reveal that BTC faces $8 billion in short positions above and $4 billion in longs below. The price explosion past $102,000 has ignited widespread liquidations across major exchanges. This marks a shift in market structure, with short-sellers now under severe pressure.
Source: Merlijn The Trader
The 7-day liquidation map highlights the intensity of this rally. Short liquidations surged after Bitcoin crossed $103,836. The green line, tracking short exposure, climbed steadily toward $8 billion. Meanwhile, long liquidations declined sharply, reflecting reduced downside risk. Binance, OKX, and Bybit contributed to varying liquidation volumes. However, Bybit recorded the most consistent liquidations during each surge.
Besides that, the highest liquidation zone occurred between $103,836 and $105,816. This range experienced repeated liquidation bars exceeding $350 million. Consequently, market sentiment shifted bullish as Bitcoin soared past $107,796. Liquidation volumes eased, signaling reduced leveraged trading and a possible short-term equilibrium. Moreover, cascading short squeezes fueled price acceleration as shorts closed en masse.
Consolidation Breakout and Volume Dynamics
While liquidation pressure mounted, technical patterns also supported bullish continuation. Trader Tardigrade’s 4-hour timeframe displayed a symmetrical triangle between $102,000 and $104,000. Bitcoin broke out decisively, blasting up to $116,000. This $12,000 move confirms the triangle as a continuation pattern.
Source: Trader Tardigrade
Additionally, key support zones formed earlier between $94,000 and $97,000. These areas anchored the rally that pushed prices toward the current highs. However, volume tells a different story. A declining 24-hour volume suggests reduced participation despite rising prices. This divergence could indicate exhaustion or a looming volatility spike.
Inside the triangle, bulls and bears battled for dominance. However, the breakout finally settled the struggle in favor of bulls. Significantly, no clear resistance exists above $116,000. Hence, if volume revives, Bitcoin could target fresh all-time highs.
