Bitcoin Surpasses $97,000, Triggering $645 Million in Short Liquidations on Major CEXs

Bitcoin reached a key price threshold of $97,000 on January 18, 2026, triggering $645 million in short liquidations on major centralized exchanges (CEXs) according to Coinglass data. The level is associated with significant trading activity as a liquidity cascade is expected once the threshold is breached. The cumulative intensity at this level suggests increased market sensitivity to price movement above $97,000.

The liquidation chart data, while not showing exact contract values, reflects the relative importance of each price cluster compared to neighboring ones. This means the $645 million figure is a measure of intensity, not a direct financial value. A higher bar on the chart indicates a stronger potential price reaction due to liquidity events.

If Bitcoin drops below $93,000, the same data indicates $752 million in long liquidations may occur. This highlights a dual sensitivity in the market where both long and short positions face risk at these price thresholds. Investors and traders are advised to closely monitor these levels as position clusters continue to grow.

Why Did This Happen?

Bitcoin crossed the $97,000 level following a period of increased institutional buying and ETF inflows. Net institutional demand for Bitcoin has correlated with price gains over the past year, particularly after significant purchases by firms like Strategy. This includes $1.25 billion in BTC acquisitions and $753 million in inflows into U.S. spot ETFs.

The price movement also coincided with a decline in the number of BTC holders, a trend observed over the past two months. This decline is often seen as a positive indicator in the market, as it suggests reduced selling pressure from smaller investors. Additionally, the supply of Bitcoin on exchanges has hit a seven-month low, further reducing the risk of a selloff.

How Did Markets React?

Market participants have been closely watching the regulatory landscape for potential impacts on Bitcoin. The Senate delayed a key cryptocurrency bill on January 14, causing some volatility and uncertainty in the market. Coinbase CEO Brian Armstrong voiced strong concerns about the bill's current structure, emphasizing that "we'd rather have no bill than a bad bill".

The delay led to a drop in inflows into Bitcoin ETFs. On January 15, net inflows into U.S.-listed spot ETFs dropped to $100.2 million, a stark decline from the $840.6 million recorded on January 14. BlackRock's iShares Bitcoin Trust ETF (IBIT) remained the largest contributor, while Fidelity's FBTC experienced outflows.

Bitcoin's price response to the regulatory delay was mixed. On January 15, it slipped under $96,000 but remained above key support levels. The Fear and Greed Index dropped back to 49, indicating a return to neutral sentiment after a brief move into greed territory.

What Are Analysts Watching Next?

Analysts are keeping a close eye on the $95,000 level as a key psychological support. If Bitcoin continues to hold above this level, it may signal continued bullish momentum. Technical indicators like the MACD and RSI remain in positive territory, suggesting buyers are still in control.

Regulatory developments remain a key focus. Senate Banking Committee Chairman Tim Scott announced that negotiations continue in good faith, with the markup of the digital asset market structure bill expected to be rescheduled. Investors are advised to monitor these developments for potential impacts on market sentiment and liquidity.

Institutional demand is also a key factor. ETF flows continue to reflect broader institutional interest, with recent inflows into IBIT and other major funds indicating ongoing accumulation. This trend may provide support for Bitcoin even amid regulatory uncertainty.

Bitcoin's price has confirmed a breakout from an ascending triangle pattern on the daily chart, a classic bullish structure. This pattern suggests the potential for further upward movement if support levels continue to hold.

Bitcoin currently trades near $97,100, with a 2% gain over the past 24 hours. The asset remains in a period of consolidation following a recent rally, with market participants waiting for more clarity on regulatory and macroeconomic developments.