Monster short squeeze alert for Bitcoin worth $18 billion
A spike in upside liquidity suggests that Bitcoin (BTC) may be positioning for another short squeeze. Trading above $116,506 at the time of writing, Bitcoin faces nearly $18 billion in leveraged short positions, with the heatmap showing a liquidation zone near $120,000, according to CoinGlass data gathered on August 7. The chart below pinpoints the regions with the highest density of leveraged short positions and highlights the zones most prone to liquidation. More precisely, the steepening green curve on the right visualizes where short sellers face the greatest risk of being wiped out. BTC exchange liquidation map. Source: CoinGlass The data shows a sharp uptick in the curve just above the $119,000 level, after which a dense concentration of leveraged short positions clearly appears. What that means is that if Bitcoin begins to push toward that zone, we might see a chain reaction trapping late short sellers and potentially driving the price even higher...