Bitcoin News Today: Bitcoin's Price Faces $118k Short Squeeze or $114k Long Liquidation Trap

Generated by AI AgentCoin World
Saturday, Oct 11, 2025 1:28 am ET1min read
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- Bitcoin's price above $118,000 could trigger $1.069B in short liquidations on CEXs, per Coinglass data.

- A drop below $114,000 risks $678M in long liquidations, highlighting leveraged position concentration.

- Liquidation intensity metrics indicate self-reinforcing price volatility as forced exits cascade.

- Analysts warn $110k–$118k range holds $15.11B in potential short liquidations during 10% rallies.

- Market participants urged to monitor key thresholds where leverage amplifies crypto price swings.

If Bitcoin's price rebounds above $118,000, the cumulative short liquidation pressure on mainstream centralized exchanges (CEXs) could reach $1.069 billion, according to Coinglass data cited by BlockBeats BlockBeats[2]. This

threshold
represents a critical level where a surge in forced closures of short positions could amplify upward price momentum through a short squeeze. Conversely, if
Bitcoin
falls below $114,000, the same data indicates a potential $678 million in long liquidation pressure on CEXs BlockBeats[2].

The liquidation intensity data reflects the relative concentration of leveraged positions at specific price levels, rather than exact contract values or quantities. Coinglass explains that the liquidation charts measure the "importance" of each liquidation cluster relative to adjacent clusters, indicating how intense the market reaction might be if the price reaches those levels BlockBeats[2]. A higher liquidation bar suggests a greater likelihood of price acceleration due to cascading forced exits. For example, the $118,000 threshold's $1.069 billion short liquidation intensity implies that a price breakthrough could trigger significant upward volatility as short sellers scramble to cover positions.

Additional Coinglass data highlights other key price levels. If Bitcoin surpasses $110,000, short liquidation intensity on CEXs could reach $605 million BlockBeats[3]. However, a drop below $108,000 would expose $858 million in long positions to liquidation risk BlockBeats[3]. These figures underscore the heightened leverage and sensitivity in the market, particularly around the $110k–$118k range.

Analysts note that liquidation clusters can act as self-fulfilling triggers for price movements. For instance, a 10% rally in Bitcoin could lead to $15.11 billion in short liquidations, while a 10% decline might erase $9.58 billion in long positions, according to trader Cas Abbé . While these broader figures apply to different price scenarios, they contextualize the volatility risks associated with leveraged trading.

Market participants are advised to monitor these thresholds closely, as large-scale liquidations often coincide with sharp price swings. For example, Coinglass data from August 2025 showed that a $115,000 price level could trigger $1.734 billion in short liquidations, while a drop below $111,000 risks $1.8 billion in long liquidations BlockBeats[1]. Such scenarios highlight the interconnectedness of leverage, market sentiment, and liquidity dynamics in the crypto derivatives market.