Key Takeaways
- $1.2 billion in leveraged short positions may be liquidated if Bitcoin hits $95,076.
- Forced buying from short liquidations could push Bitcoin price even higher.
$1.2 billion in leveraged short positions are at risk of liquidation if Bitcoin rallies to $95,076, according to Coinglass’ liquidation map.
The potential liquidations highlight the amount of bearish bets currently placed against the largest digital asset by market capitalization. Short positions involve traders borrowing Bitcoin to sell it, betting that the price will decline so they can buy it back at a lower price and profit from the difference.
Liquidations occur when traders’ positions are automatically closed by exchanges due to insufficient collateral to maintain their leveraged bets. A move to $95,076 would trigger forced buying as these short positions are closed, potentially accelerating upward price momentum.
Bitcoin sits at $91,895 at press time, pulling back from its move above $94,000 ahead of the FOMC decision, per CoinGecko.
Source: https://cryptobriefing.com/bitcoin-short-liquidations-95076/