Bitcoin (BTC) is teetering on a critical technical level, with analysts warning of major short liquidations and significant whale activity influencing market direction.
According to crypto analyst Ali Martinez, over $23.65 million in short positions could be liquidated if Bitcoin breaks back above the $105,000 mark.
Liquidation Heatmap Suggests Major Short Squeeze Potential
A heatmap from CoinGlass shared by Ali reveals a dense cluster of short positions just above $105,000, suggesting a potential liquidation cascade if bulls manage to push through that resistance. This would force short-sellers to buy back BTC to cover their positions, potentially accelerating price movement upward in a short squeeze scenario.
“$23.65 million will be liquidated in short positions if Bitcoin jumps back above $105,000!” Ali stated, highlighting a critical near-term inflection point.
Whales Take Profits: Over 30,000 BTC Sold in 72 Hours
However, the bullish thesis is complicated by heavy whale selling. On-chain data indicates that Bitcoin wallets holding between 1,000 and 10,000 BTC have offloaded more than 30,000 BTC in the last three days, a move typically associated with profit-taking at local highs.
While such activity doesn’t necessarily spell the end of the rally, it may temporarily suppress upward momentum, especially if demand doesn’t immediately absorb the sell pressure.
Outlook: Battle Between Shorts and Smart Money
Bitcoin now stands at a crossroads: a breakout above $105K could liquidate millions in shorts and re-ignite bullish momentum. However, recent whale profit-taking suggests caution, potentially signaling a cool-off or consolidation phase before any significant continuation.
In short, while the setup favors a possible explosive move, the next few days will likely depend on whether retail and institutional buyers can outweigh recent sell pressure from large holders.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/millions-in-short-liquidations-loom-if-bitcoin-breaks-above-this-level/