$85 million in short positions are being liquidated as BTC breaks through $94,927, with two major market risk levels emerging.

According to the latest data, Bitcoin faces significant liquidation risks at specific price levels. If BTC breaks above $94,927, the cumulative short liquidation strength across major exchanges will reach $850 million; conversely, if it falls below $86,682, the long liquidation strength will reach $848 million. Currently, BTC is trading near $91,031.95, between these two key levels, and the market faces clear two-way risks.

Market Signals Behind the Liquidation Data

What is liquidation strength

Liquidation strength reflects how many contract positions are at risk of being forcibly closed when the price reaches a certain level. The higher the liquidation bar, the more intense the liquidity wave generated at that level, and the more volatile the market may become.

Current Two-Way Risk Pattern

Based on the data, BTC faces relatively balanced liquidation pressure:

This symmetrical distribution of liquidation indicates that both longs and shorts have accumulated significant positions. Whether breaking upward or downward, it could trigger chain reactions of liquidations, amplifying price volatility.

Subtle Changes in Market Sentiment

Selling pressure persists but sentiment is easing

Related data shows the market’s complex situation:

• Fund Flows: Over the past 7 days, mainstream CEXs have experienced a net outflow of 6,317.80 BTC, with OKX outflow of 1,858.91 BTC and Kraken outflow of 1,716.22 BTC. This indicates ongoing selling pressure in the market.

• US Market Sentiment: Coinbase Bitcoin premium index has been in negative premium for five consecutive days (currently at -0.126%), suggesting strong selling in the US market, possibly with institutions or compliant funds gradually exiting.

• Funding Rates Turning Neutral: Latest data shows that funding rates for BTC and ETH on major CEXs and DEXs have returned to neutral, indicating the market is no longer bearish on mainstream coins. This is a positive signal—extreme pessimism is easing.

Personal Opinion

This contradictory phenomenon reflects that the market is at a turning point. Funds are flowing out, premiums are declining, which seems bearish, but the neutral funding rates indicate that bearish sentiment has been somewhat released, and the market may be waiting for confirmation of the next direction.

Significance of Key Price Levels

Currently, BTC is between two liquidation-dense zones, making this position relatively fragile. To the upside, a break above $94,927 is needed to trigger large-scale short liquidations (which would push prices higher); to the downside, a fall below $86,682 is required to trigger large-scale long liquidations (which would push prices lower).

In other words, if the price can effectively break through either of these levels, the ensuing liquidation waves could further drive the price in the same direction, creating an acceleration effect. But if the price oscillates within this range, it may become stuck in a stalemate.

Next Focus

There is about $4,000 of upward room to reach $94,927, and about $4,350 of downward room to reach $86,682. These two levels will be key points to watch in the upcoming market. Once the price approaches either, intense volatility may occur. Continuous monitoring of fund flows and Coinbase premium index changes is necessary—if premiums turn positive or net fund inflows increase, it could signal a reversal in US market sentiment.

Summary

BTC liquidation data shows the market is in a relatively balanced but fragile state. The $850 million level of liquidation strength exists in both directions, meaning that breaking through or falling below key levels could trigger intense volatility. Although selling pressure remains, sentiment has eased somewhat, creating conditions for a potential rebound. Investors should closely watch these two levels, $94,927 and $86,682, and their surrounding price movements, as they will determine the short-term market trend.