Bitcoin Short Liquidations Surge, Paving Way for Potential $90K Target
- Over $7.9 billion in short liquidations occurred from February to April, with a peak of $737 million on February 13.
- Bitcoin’s price remains above $80,000, creating conditions for potential future short squeezes as traders build short positions.
- BTC open interest rose by 6% to $29 billion, the highest since January, indicating increased market sensitivity to price fluctuations.
- The current support level for Bitcoin is around $81,500, which aligns with the short-term holder cost basis.
- Liquidation clusters are identified at $81,000–$82,000 for shorts and between $77,000 and $78,000 for longs.
The ongoing accumulation of Bitcoin is reflected in net exchange outflows of -837 BTC on May 5, maintaining limited sell pressure despite a larger outflow earlier in the week.
With significant liquidation risks at various price points and strong support near $81,500, Bitcoin’s trajectory appears poised towards the upper range of $86,000 to $90,000.(Source)
