$970M lost: Bitcoin’s $100K surge triggers mass liquidation

• Bitcoin’s current surge has triggered a major quick squeeze, resulting in substantial liquidations.
• The market stays risky, and buyers ought to be ready for potential corrections.

A inexperienced crypto market normally spells bother for short-sellers, and Bitcoin’s [BTC] dramatic return to the $100k milestone was no completely different. 

In a shocking transfer that worn out $970 million in leveraged positions, bearish bets have been forcefully liquidated. Briefly, merchants positioned in opposition to the rally discovered themselves caught in a textbook quick squeeze.

The end result? A bullish stampede that left the bears bruised and the crypto market basking in inexperienced glory.

A shock rally for bulls, a shockwave for bears

On the 2nd of Could, Bitcoin depraved by the $98k ceiling, teasing a breakout. Nonetheless, the follow-through was something however convincing. 

And not using a robust spot bid, bulls misplaced momentum quick. Bears smelled blood. With shorts stacking as much as 63.64% dominance in BTC/USDT perps on Binance, the setup was ripe. 

What adopted was a textbook lengthy squeeze: Open Curiosity flushed, longs received nuked, and BTC retraced to $94k in simply 48 hours.

However fast-forward every week, and the tables turned. A brutal $970 million in liquidations marked a market-wide rebound, with the Funding Charge (FR) spiking inexperienced for its longest stretch in a month.

Supply: CryptoQuant

Evidently, Futures merchants are nonetheless all-in on a BTC bull run, with lengthy dominance at 51.64% throughout exchanges. The 4-hour order ebook screams “bullish vibes.”

However the bears aren’t out but. On Binance, 60% of accounts are nonetheless positioned short, betting on a possible value rejection close to the $103k resistance zone. 

Is Bitcoin establishing for a possible liquidity lure, repeating the identical market construction from final week?

Liquidity squeezes conserving the Bitcoin bulls at bay

Cracks are beginning to present. Regardless that BTC surged again to $104k in a fast intra-day transfer, Bitcoin’s Open Curiosity (OI) has dropped round 4.30%, now resting at $63.70 billion. 

In different phrases, Futures merchants are already hitting the exit button, unwinding leverage and cashing out because the hype fades.

Nonetheless, there’s no stable signal of spot distribution — but. On-chain flows recommend HODLers are holding the road, eyeing increased targets. 

So, this wave of derivatives-driven sell-side stress may simply get absorbed like a dip on a bull’s radar.

In actual fact, if Bitcoin continues slicing by provide partitions, the setup is ripe for one more punishing quick squeeze. That $970 million? Might simply be the warm-up.

Supply: Coinglass

Liquidity maps spotlight a dense cluster round $103,685, with $49.64 million in stacked leveraged positions. 

If bears get too comfy, bulls may simply spring the lure and rocket Bitcoin towards $105k.