- The current price of Bitcoin is just below a major zone where short positions may be forcefully closed.
- Data shows over one billion dollars in shorts will be at risk if BTC pushes past one hundred fifteen thousand.
- Exchanges like Binance and OKX hold most of the open shorts that could fuel a large squeeze this week.
Bitcoin is nearing a liquidation trigger point where $1.5 billion worth of short positions could be forcefully closed around the $115,000 mark. Data shared on May 11, 2025, by Coinglass illustrates how rising prices are pushing leveraged shorts toward a major liquidation event. The current price stands at $104,886, placing the market within 10% of this critical liquidation level.
Cumulative Liquidation Leverage Nears Threshold
The chart displays a cumulative liquidation graph, showing a large cluster of short positions with leverage stacked between $103,000 and $115,000. As the price rises, the potential to squeeze these positions increases significantly. The turquoise line marking short liquidation leverage trends higher, suggesting a growing number of vulnerable positions.
Binance, OKX, and Bybit account for the majority of volume, with Binance alone hosting the largest liquidation clusters. Colored volume bars indicate growing market participation, with liquidation-driven moves potentially pushing volatility higher. If Bitcoin breaks above $110,000, the pace of liquidations could spike dramatically.
The red line on the chart marks long liquidations, which have already tapered off, showing short traders remain more exposed. In contrast, long traders appear to have been wiped out in earlier corrections, leaving the field open for short squeezes. With cumulative short leverage now building, the likelihood of a forced breakout is increasing.
Price Compression May Trigger Accelerated Short Squeeze
If Bitcoin reaches $115,000, a rapid liquidation wave may unfold due to tight stop levels and thin overhead liquidity zones. Such conditions are common in leveraged crypto markets, especially when many positions are placed near clustered levels. The liquidation volume could be strong enough to push prices even higher once triggered.
Analysts suggest that these squeezes often act as breakout catalysts, attracting more buyers once initial liquidations begin. With $1.5 billion in shorts positioned just above current prices, the breakout zone between $110,000 and $115,000 remains crucial. Traders will closely watch this range for signals of cascading liquidations.
The current price of $104,886 places Bitcoin just 10% away from the potential squeeze point. Given recent volume increases, it would take a relatively modest rally to trigger early liquidations. This could initiate a self-reinforcing cycle, pushing price acceleration beyond $115,000 in a short timeframe.
Will the $115K Level Spark the Largest Short Liquidation Yet?
The central question now is whether the $115,000 price level will unleash one of the largest Bitcoin short liquidations to date. With $1.5 billion in leveraged shorts stacked, a surge past this level could dramatically impact the market. This setup mirrors past moves where liquidation zones became launch pads for vertical rallies.
Market participants are watching closely for a clean break above $110,000 as a possible signal. The short leverage curve suggests a build-up not seen since earlier 2024 rallies. If this pressure continues building, Bitcoin could enter another aggressive upward phase driven by forced buying.
As noted in the chart shared by Vivek, the liquidation data has captured strong interest across platforms. With leveraged traders now cornered, the price action over the next $10,000 range may determine the next major cycle move. All eyes are on the liquidation threshold at $115,000.
