Bitcoin Liquidation Data Points To ‘absurd’ Potential Rally To

Bitcoin’s liquidation map is still heavily biased toward downside liquidity, but a swift rally to $100,000 could quickly turn the tables in the bulls’ favor.

Bitcoin’s (BTC) sharp 7.4% rebound kick-started the first week of January and has shifted markets’ focus back to futures positioning, where liquidation data suggests the price action may be asymmetric.

Over $10.6 billion in long liquidations sit below $84,000, versus just $2 billion in shorts above $104,000.

Retail positioning on Hyperliquid shows shorts are more vulnerable to upside squeezes than longs to downside moves.

Bitcoin must reclaim the $100,000 cost basis to confirm a structural trend reversal.

According to data from CoinGlass, approximately $10.65 billion in leveraged long positions would be liquidated if Bitcoin revisits $84,000. In contrast, only around $2 billion in short positions face liquidation if BTC rallies to $104,000.

This imbalance matters because liquidations can act as forced market orders. A downside move toward $84,000 risks long liquidations, accelerating selling pressure. On the upside, however, fewer shorts mean less fuel for a squeeze, unless positioning changes rapidly.

However, on Hyperliquid, the outlook is different. Crypto trader ChimpZoo highlighted that retail traders were disproportionately short, noting that a rally could liquidate about 6,000 BTC worth of retail shorts, compared with only 2,000 BTC of retail longs on a similar downside move.

Calling the setup “absurd,” the trader argued that such positioning could propel Bitcoin to new highs at a rapid pace. However, a closer look at the data suggested a more balanced risk profile. While the exchange still shows a net short bias, liquidation exposure on a $10,000 price move is relatively symmetrical.

On such a move, approximately 3,860 BTC in long positions would be liquidated on a downside swing, compared with roughly 4,100 BTC in short positions on an upside move.

Source: CoinTelegraph