Bitcoin is currently trading between $63,000 and $65,500, close to the $65,600 level that could trigger the liquidation of $1 billion in short positions. Data from major exchanges (Binance, Bybit, OKX) reveals a significant concentration of short positions between $65,800 and $66,100, with a broader liquidity zone extending from $62,000 to $68,000. A recent upward price rally already caused the liquidation of over $29 million in short positions, demonstrating that this mechanism is already warming up. If bitcoin breaks above $65,600, a cascade of short liquidations becomes likely, creating an asymmetric risk profile that favors the upside. Conversely, a pullback toward $62,000 or below would make long positions vulnerable to a downward liquidation cascade.
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