Warning about the $15 billion Bitcoin short sale

Data from CoinGlass shows that Bitcoin could be about to experience a short squeeze with nearly $15 billion in leveraged short positions open on major exchanges as BTC price hovers around $116,738 .

If the $120,000 resistance level is broken, a buyback from shorts could push the price higher. The heat map shows that the highest leveraged area is also the most vulnerable to liquidation.

As BTC crosses $120,000, large amounts of leveraged liquidity could trigger a short squeeze.

Liquidation of losing short positions would create sudden buying pressure, pushing prices higher – similar to the short squeezes that occurred in 2020 and 2021. The chart shows capital betting on Bitcoin's bullish trend.

Bitcoin Short Liquidation Leverage Summary
The chart shows that traders who are short below $120,000 are in a high-risk zone. While BTC is unlikely to rally, the $14.69 billion in shorts is a potential signal for strong volatility.

If there is a strong enough catalyst, BTC price can break out quickly and violently, instead of increasing slowly.