Bitcoin short liquidation volume has surged to approximately $900 million, nearing the record $1.1 billion peak observed in November 2024. This sharp increase highlights mounting risks for traders with bearish positions amid potential market turbulence.
The current liquidation levels mirror conditions in November 2024, when traders aggressively shorted Bitcoin during a pullback triggered by global tariff policy shifts. Despite Bitcoin’s historically strong performance in July and anticipation around upcoming crypto regulatory discussions, significant short positions remain active across derivatives markets.
Technical analysts warn that if Bitcoin breaks through the critical $122,000 resistance level, a sustained upward trajectory may follow. Such a move could surpass the previous high of $106,000 and propel prices upwards in roughly $16,000 increments, potentially triggering cascading liquidations.
Market observers interpret this pattern as a signal that volatility could escalate soon, cautioning traders about concentrated short exposure ahead of key technical and regulatory catalysts.