- Bitcoin’s $66,200 liquidation level could trigger a $10 billion short squeeze.
- Further liquidations at $70,300 and $72,578 could accelerate Bitcoin’s upward trajectory.
Bitcoin [BTC] is approaching key liquidation levels that could trigger a sudden short squeeze and forcefully push the price higher.
According to one tweet Short positions worth $10 billion are at risk at the $66,000 level, according to a renowned analyst. Reaching this level would set off a chain reaction.
Liquidation levels at USD 70,300 and USD 72,578 could also accelerate the upward pressure, which will make a strong case for Bitcoin in the coming days.
A short squeeze could be triggered at $66,200
At the $66,200 level, $10 billion of short positions will be liquidated, effectively turning into spot purchases.
This shift could trigger a short squeeze, forcing market participants to hedge their positions, increasing buying pressure on Bitcoin.
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Such an event typically drives prices higher, making this level a crucial threshold for Bitcoin’s near-term future.
Bitcoin’s next price increase could occur at $70,300
If Bitcoin were to break above the $66,200 level, the next major level would be around $70,300, liquidating $16 billion in short positions.
That would mean yet another wave of liquidations and likely reinforce the upward movement into new territory.
These liquidations typically have a cascading effect, amplifying price movement and turning bearish positions into forced buybacks.
Source:
Bitcoin latest rise
The last significant liquidation zone is at $72,578, with $18 billion of short positions at liquidation risk.
If Bitcoin reaches that price, a third wave of buy-side pressure will be triggered to push the price further up.
The market will be very volatile and this zone could be the starting point for a big rally.
Source:
BTC paints a bullish picture
Since September 7, Bitcoin’s open interest has been rising, a sign of traders’ increasing participation in leveraged positions.
Source: Coinglass
Meanwhile, Bitcoin inflows witnessed periodic fluctuating spikes over the past month. The inflow is currently gaining momentum after the recent dip.
This is indicative of increased activity and interest in Bitcoin trading as investors position themselves for any price movements.
Source: CryptoQuant
Read Bitcoin’s [BTC] Price forecast 2024–2025
The market is now on high alert as to how Bitcoin is approaching these key liquidation zones.
Such a short squeeze could cause prices to rise sharply, especially if the expected back-to-back liquidations actually occur.