Bitcoin Short Liquidations Surge 82% to $900 Million

Matrixport, a prominent digital asset financial services platform, has released its daily analysis highlighting a significant surge in Bitcoin short liquidation volumes. This surge is nearing levels last seen in early November 2024, when many traders attempted to short the cryptocurrency during a rebound. However, the price did not fall as expected and instead oscillated at the high before experiencing a pullback influenced by tariff policies.

The weekly short liquidation volume in early November 2024 reached a staggering $1.1 billion. In the past week, it has also climbed to $900 million, indicating a growing short risk in the market. Despite July traditionally being a strong month for Bitcoin and the impending "Crypto Policy Week," there remains a substantial number of short positions that warrant attention.

If Bitcoin manages to break through the key resistance level of $122,000, it has the potential to surpass the previous resistance at $106,000. This breakthrough could also set the stage for a continued upward trend in $16,000 increments, unlocking further upside potential for the cryptocurrency.