Bitcoin price has approached a key technical zone that could trigger large-scale short liquidations in the derivatives market. Liquidation data shows that if the price reaches the $90,000 level, over $13 billion in open short positions could be liquidated. Liquidation maps on exchanges show densely stacked short positions just above the current price level. This area creates a compression potential that could pave the way for a rapid upward movement in the price.
Increased Leverage Pressure at $90,000
Liquidation heatmap analysis shows that cumulative short positions are concentrated in the price band from the upper limit of $80,000 to $90,000. It is stated that when the price approaches or enters this zone, overleveraged short positions can create an upward movement in the market through forced purchases. Such liquidation chains can trigger market orders, causing rapid price increases in a short time. On the other hand, it is emphasized that the liquidation pressure is relatively weaker in long downward positions.
Remarkable Increase in Long-Term Investors’ Demand
According to on-chain data, there has been a significant increase in demand from so-called “spooler” wallets over the past seven days. Liquidity inventory charts show that selling pressure has decreased on the exchanges and GBTC side, while accumulator addresses have shown a remarkable increase in 30-day balance changes. This development is considered as a sign that long-term investors’ buying interest in the market has reached one of the strongest levels in recent months.
Data on “accumulator” wallets reveal that cryptocurrencies have been withdrawn from exchanges recently and long-term positions have grown.
Declining Spot Liquidity and Unbalanced Leverage Chart
The decrease in supply in stock exchanges and the increase in long-term investor demand tightens liquidity in the spot market. If there are short positions stacked on top of each other in the derivative market at the same time, an asymmetric structure may occur in the market. In such cases, a very high purchase volume may not be needed to increase the price. A small upward move can initiate large-scale liquidation chains and push the price even higher.
In this process, the unbalanced leverage distribution in derivative markets and the supply withdrawn from the spot market, when evaluated together, increase the possibility of the price movement gaining rapid upward momentum.
Experts point out that the most critical level in the current situation is $ 90,000. It is reported that if this level is clearly regained, the short position of over 13 billion dollars may be liquidated, which may rapidly increase the price. However, if the price cannot exceed this region, it is considered that the market may continue to follow a horizontal course and it may take time to re-establish the leverage balance.
Currently, the tension in the market between the increasing demand of long-term savers on the one hand and the intense short position load on the other is noteworthy. It is stated that price movements can be shaped by the interaction between these two dynamics.
