If Bitcoin surges to $96,900, it may trigger a $9.6 billion short positions liquidation risk.

According to the latest liquidation map data, if the Bitcoin price rises to $96,900, approximately $9.6 billion in short positions will be at risk of liquidation. This means that if the market experiences a strong rebound, it could trigger a large-scale short position close-out wave, further amplifying price fluctuations.

As of the time of writing, Bitcoin is priced at approximately $86,583, having briefly dipped below $84,000 earlier before a slight Rebound. The recent Fluctuation in Bitcoin is closely related to the increase in leverage usage in the derivatives market. More and more traders are betting on price direction in a high leverage environment, making the market more sensitive to short-term Fluctuation.

When traders borrow funds to short Bitcoin, if the price suddenly rises, they need to add margin or be forced to buy to close the position at a higher price. If a large number of short positions are concentrated in a similar price range, once a key price level is breached, it may trigger a chain liquidation: shorts are forced to buy, pushing the price further up, leading to more liquidations. This chain reaction is known as a “short squeeze,” which has caused prices to spike instantly in several past Bitcoin market situations.

The accumulated short positions of 9.6 billion USD in the current market means that once the BTC price approaches 96,900 USD, the exchange will automatically close these high-risk positions to reduce default risk. Such concentrated leveraged bets not only exacerbate market fluctuations but also make Bitcoin more prone to rapid rebounds near key price levels.

Overall, the current Bitcoin market is in a high leverage and high sensitivity stage. The short-term trend may experience significant fluctuations due to the presence of densely packed short positions liquidation zones, and investors need to be cautious of the risks brought by rapid price rises and falls.