A liquidity imbalance in the Bitcoin (BTC) market is setting the stage for a potential rally toward the $80,000 level. Currently, over $4 billion in short positions are at risk of liquidation above this level. After successfully defending the $76,100 support level for two days, bullish signals have begun to emerge on lower timeframes. This is reported by Cointelegraph.com .
A bullish divergence between the Bitcoin price and the Relative Strength Index (RSI) has been observed on the one-hour chart. The rising lows around $76,100 indicate strengthening buyer momentum. Additionally, the BTC price is forming an inverse head-and-shoulders pattern below the descending trendline, suggesting weakening bearish pressure. If the price breaks above $78,000, it will open a path toward the fair-value gap (FVG) zone between $79,500 and $80,300.
According to CoinGlass data, the largest leverage risk is concentrated above current prices. A move toward $80,000 could trigger a massive short squeeze. For comparison, if the price drops to $75,000, approximately $3 billion in long positions would be liquidated, indicating that short sellers are currently under higher pressure.
Bitcoin liquidation activity has already accelerated over the last 24 hours. CoinGlass reported that 103,963 traders had a total of $286.08 million in positions liquidated. Of that, nearly $175 million consisted of short positions. The largest single liquidation occurred on the Binance exchange in the BTCUSDT pair, amounting to $3.04 million.
CryptoQuant data shows that open interest in Bitcoin denominations has decreased to 116,800 BTC. This suggests that traders closed a portion of their leveraged positions during recent volatility. Spot market participation remains relatively weak, indicating that the current growth is driven more by the futures market and funding rates.
Read “Zamin” on Telegram!
