Millions in Short Liquidations Loom if Bitcoin Breaks Above This Level

Bitcoin (BTC) is teetering on a critical technical level, with analysts warning of major short liquidations and significant whale activity influencing market direction.

Bitcoin (BTC) is juggling a technical pivot, major short liquidations, and large-scale "whale" activity, all of which are impacting price direction, according to Monday’s analysis.

Pointing to data from CoinGlass, crypto analyst Ali Martinez said that over $23.65 million in short positions could be liquidated if Bitcoin manages to break back above the $105,000 mark.

A heatmap from CoinGlass shows a dense band of short positions just above $105,000, which may set up a so-called "liquidation cascade."

If bulls manage to push through that resistance, leading to the liquidation of these short positions, short-sellers would be forced to buy back BTC to cover their trades. This activity could accelerate price movement upward, setting up a classic "short squeeze" scenario.

"Another $23.65 million will be liquidated in short positions if #Bitcoin manages to jump back above the $105,000 level. This will be interesting to watch! 🔥"

However, the bullish thesis is complicated by heavy "whale" selling.

On-chain data from Glassnode reveals that Bitcoin wallets holding between 1,000 and 10,000 BTC have offloaded over 30,000 BTC in the last three days.

This selling activity is usually observed when market participants take profits at local highs, especially considering the magnitudes of transactions.

While such selling doesn't necessarily spell the end of the rally, it may act as a bottleneck, especially if demand doesn't immediately absorb the sell pressure.

This coincides with a decline in Binance whale inflows, which fell to their lowest point in six months, suggesting that a good portion of the recent buying pressure came from exchange-based traders rather than large institutions or DeFi protocols.

Ultimately, the next few days will depend on whether retail and institutional buyers can outweigh recent sell pressure from large holders.