- $116.5K emerges as a key short liquidation target.
- Recent long liquidation cascade resets market.
- Price momentum may shift toward squeezing short sellers.
Bitcoin appears to be gearing up for another major move—this time targeting short sellers. After a cascade of long liquidations earlier in the week, the market now shows a buildup of short liquidations around the $116.5K level. This indicates a possible short squeeze ahead, where rapid price movements force short sellers to exit their positions at a loss.
According to recent liquidation heatmap data, $116.5K has become a magnet for liquidity, especially from traders betting against Bitcoin’s price. This zone could act as a short-term target if upward momentum continues, as the market tends to gravitate toward areas with high liquidity concentrations.
Long Liquidations Set the Stage
Earlier in the week, Bitcoin suffered a significant long liquidation event, flushing out over-leveraged long positions. These types of events often lead to market resets, clearing excessive bullish sentiment and opening the door for a reversal.
With that liquidation wave now behind us, the market may be preparing for a bounce. The accumulation of short positions presents an opportunity for the price to surge, potentially triggering a wave of short liquidations—adding fuel to the rally.
Will Bitcoin Hit the $116.5K Target?
The $116.5K level is now in focus, both technically and psychologically. If the price moves toward this level, it could set off a short squeeze, forcing bears to buy back into the market and pushing prices even higher.
While short-term volatility remains, Bitcoin’s tendency to seek out liquidation clusters gives this target real significance. Traders should watch for increased volume and momentum as the price approaches this zone.
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