After this round of BTC surging from $78,000 to $87,000, the positioning of leveraged positions is already quite delicate.
According to PANews, citing data from Jiang Zhuoer and Coinglass, based on Binance BTC/USDT perpetual contracts: if BTC rises another $10,000, the cumulative liquidation strength of short positions is about $440 million; if BTC falls another $10,000, the cumulative liquidation strength of long positions reaches $1.663 billion. In other words, the room for shorts on the upside is narrowing, while longs on the downside are getting more crowded.
If the price continues to probe the $87,500 area, it may first trigger stop-losses for shorts around the prior high. But once it breaks below $79,000, the amplifying effect of a chain reaction of long stop-losses will be even more pronounced. Spot holders will be more focused on whether the level above $87,000 can see enough volume to hold, while derivatives traders will need to watch how the liquidation zones on both sides shift. Which would you be more concerned about: first driving up to $87,500, or first pulling back to $79,000?
Figure 1: BTC long liquidation pressure heats up · Source: partial screenshot of the page
Image source: https://www.panewslab.com/zh/articles/01a0cc11-d066-777a-a0d0-2f47a111d554
According to PANews, citing data from Jiang Zhuoer and Coinglass, based on Binance BTC/USDT perpetual contracts: if BTC rises another $10,000, the cumulative liquidation strength of short positions is about $440 million; if BTC falls another $10,000, the cumulative liquidation strength of long positions reaches $1.663 billion. In other words, the room for shorts on the upside is narrowing, while longs on the downside are getting more crowded.
If the price continues to probe the $87,500 area, it may first trigger stop-losses for shorts around the prior high. But once it breaks below $79,000, the amplifying effect of a chain reaction of long stop-losses will be even more pronounced. Spot holders will be more focused on whether the level above $87,000 can see enough volume to hold, while derivatives traders will need to watch how the liquidation zones on both sides shift. Which would you be more concerned about: first driving up to $87,500, or first pulling back to $79,000?
Figure 1: BTC long liquidation pressure heats up · Source: partial screenshot of the page
Image source: https://www.panewslab.com/zh/articles/01a0cc11-d066-777a-a0d0-2f47a111d554
