The global cryptocurrency market is focusing on Bitcoin's price, which is closely approaching the historic $100,000 mark. As of the time of writing, according to OKX spot prices, Bitcoin's spot trading price is fluctuating around $99,600, just a step away from the $100,000 mark.
Analysts point out that $100,000 is not only psychologically significant, but also a critical pressure point for both long and short positions in the futures and derivatives markets.
Breaking $100,000 May Trigger a Short Squeeze
According to Coinglass statistics, the total short liquidation amount in the past 12 hours is approximately $230 million.
Currently, the Bitcoin futures market has a massive amount of open contracts, with long positions actively pushing prices upward, attempting to break through the upper resistance. Meanwhile, a large number of short positions are setting stop-loss or forced liquidation points around the $100,000 level.
The market generally expects that once Bitcoin's price effectively breaks and stabilizes above the $100,000 mark, it will trigger massive short positions accumulated above this price. This could create a chain reaction, known as a "Short Squeeze", forcing more shorts to cover their positions and further driving up the price. Although the precise potential liquidation amount is difficult to quantify, breaking $100,000 could trigger billions of dollars in liquidations.
The market is currently closely watching the upcoming price trends, with the India-Pakistan conflict, US trade policies, US government reserves, and US dollar depreciation all potential catalysts for Bitcoin's rebound to $100,000, which could impact short-term and medium-term market trends.
