Bitcoin (BTC) is hovering near a crucial price inflection point that could trigger nearly $1 billion in short liquidations if the price breaks above $110,000, according to the latest data from Coinglass. Conversely, if BTC drops below $106,000, the market could see an even larger liquidation wave — with over $1.3 billion in long positions at risk.
Coinglass’s liquidation heatmap highlights two critical zones with dense clusters of leverage:
These liquidation “clusters” are areas where trader stop-losses and margin calls are heavily concentrated. While the heatmap does not reflect exact contract volumes, it visualizes where the market is most vulnerable to sudden price-driven liquidations.
Bitcoin is currently trading around $108,000, placing it in the middle of a tightly wound leverage band. This precarious position increases the likelihood of amplified volatility in either direction, as leveraged traders face potential liquidation if the market moves sharply.
Market observers warn that such price zones act as liquidity magnets—attracting price movements as traders and algorithms position for breakouts or breakdowns.
A move above $110,000 could trigger a short squeeze, forcing bearish traders to cover positions and potentially pushing BTC even higher. On the flip side, a drop below $106,000 may lead to a cascading effect of long liquidations, potentially deepening any correction.
The current setup reflects a high-risk, high-reward landscape for leveraged traders, with both bullish and bearish camps bracing for decisive action in the coming days.
July 2025, Cryptoniteuae