Bitcoin Bears Near Major Liquidation Threshold of $112 Million

Bitcoin Bears Just 1% Away From Max-Pain $112 Million Liquidation

Bitcoin is performing well on the daily chart, and CoinGlass's derivatives board is signaling a concerning situation for those who are shorting the cryptocurrency. Currently, Bitcoin (BTC) is trading at approximately $91,222, representing an increase of about 0.70% during the current session. While this might seem minimal, the liquidation "max pain" map reveals a precarious position for short-sellers.

Key Metrics to Watch

The critical figure to note is the short max-pain level, located at $91,962. This level is only 1.09% above BTC's current price and could potentially lead to an estimated $112.84 million in losses for those holding short positions if the price reaches it.

Market Analysis
BTC/USD by TradingView

This situation often frustrates market participants, as it isn't solely about being correct in predicting price direction—but rather being positioned incorrectly at critical times when too many traders are clustered at the same price level. When the price approaches a known pressure point, even a minor push can trigger a wave of buying. This can transform a quiet market scenario into a rapid price spike, making it appear as if the market has surged dramatically.

On the other side of the chart, there is no reason for bulls to panic just yet. The long max pain level is significantly lower at $86,225 per BTC, about 5.21% away from its current standing, and it carries a higher potential risk for a downturn, amounting to $226.89 million. This indicates a substantial downside risk if the market shifts to a risk-off mood.

At present, the strategy is to maintain trading above the current price range. Observing the behavior around the $91,963 mark will be important, as reaching this level could ignite a series of bear exits that may act as a catalyst for further upward movement.