Bitcoin's $1B Short Liquidation Looms as $100K Approaches

Bitcoin is nearing a critical juncture, with potential short liquidations reaching $1 billion. As the cryptocurrency approaches the $100,000 mark, traders who have bet against the market could face significant losses, potentially triggering a massive rally.

Over the past weeks, an imbalance has formed in the market, with most traders initially betting on a price increase but later switching to short positions as Bitcoin struggled to break through resistance levels. This shift could set the stage for a sharp price surge, jolting those who have bet against the market.

According to an analyst, if Bitcoin breaks above key resistance at $98,000, the price could quickly jump to $101,000 or even higher. This surge could trigger a massive short squeeze, with liquidations from those betting against the market possibly reaching $800 million at $101,000. If Bitcoin climbs to around $100,000, a minor pullback could occur before surging through key resistance points at $103,000 and $105,000. However, Bitcoin could keep going even higher, with liquidations helping to push the price up.

This shift is important for altcoins as well. Bitcoin dominance may see a brief spike as the market tests new highs, but once Bitcoin faces a minor pullback, money will likely flow back into altcoins. Total 3, which tracks altcoin performance, has already bounced back from an important zone, and breaking through this zone could trigger major altcoin movement. The real opportunity is with altcoins, as Bitcoin's rise is likely to be followed by a bigger rally in altcoin markets.

Now is a good time to accumulate Solana (SOL) as liquidations sit around $200. Injective (INJ) might soon break out, leading to a short squeeze towards $20-$21. Cardano (ADA) and Avalanche (AVAX) are also showing trend breaks. Thorchain (RUNE) presents a strong risk/reward trade, with the price possibly reaching $2-$4.