- A $2.3 billion wall of Bitcoin short positions could be liquidated once BTC crosses the critical $120,000 price resistance.
- Despite a recent $107 million liquidation, Bitcoin quickly recovered to $118,000, showing continued strength among bullish market participants.
- Analysts expect a sharp upward move as a short squeeze at $120,000 could create rapid buying pressure and drive Bitcoin into price discovery.
Bitcoin bears could be staring down a $2.3 billion liquidation wall, with the market now inching closer to the key $120,000 level.
$2.3B in BTC Shorts at Risk
A tweet by rektfencer sounded the alarm: “Bitcoin bears are about to get liquidated.” Positioned just below $120,000, a massive wall of $2.3 billion in short positions threatens to unravel if Bitcoin breaks through the resistance. Once breached, the tweet suggests the market could “fly higher,” fueled by a wave of forced short liquidations.
The timing couldn’t be more critical. Last week, Bitcoin fell from $119,000 to $115,000 after Galaxy Digital sold 10,000 BTC, which triggered $107 million in liquidations. A total of 80,000 coins in the Satoshi era were sold. BTC, however, has now recovered under the stress and is now trading above $118,000 once again, adding strength to bullish waves.
Short Squeeze Could Fuel the Next Leg Up
The market dynamic is shifting. A tweet by CW8900 stated, “$BTC recovered after a large number of long positions were liquidated. Next up is the liquidation of short positions.” That next step may be rapidly approaching.
If Bitcoin crosses $120,000, short sellers could be forced to close positions, triggering more buy orders. This typical cycle of buying fueled by liquidation occurs often in leveraged crypto markets. A short squeeze of this magnitude would likely push price momentum in an upward direction, which would grow the bullish trend we have experienced lately, and drive BTC price higher to record potential new highs.
Bears Running Out of Room
Although recent price action saw longs suffer over $105 million in liquidations, BTC held strong. Recovery above $118,000 suggests a resilient bullish base remains. The looming $2.3 billion short liquidation adds pressure on bears, who now face the risk of being swept away if the price reclaims $120K.
With Bitcoin knocking on the door of this key threshold, all eyes are on whether this short wall will break—and how high BTC could fly next.
