BTC is caught between $822 million in liquidation pressure, with danger on both sides

Bitcoin is currently in a delicate position. According to the latest data, if BTC breaks above $94,492, the cumulative short liquidation strength on mainstream CEXs will reach $8.22 billion; conversely, if it falls below $86,587, the cumulative long liquidation strength on mainstream CEXs will also be $8.22 billion. The current price of BTC is around $90,429, precisely between these two liquidation pressures.

Symmetrical Liquidation Pressure Structure

This symmetry is quite interesting. The $8.22 billion liquidation strength appears at both ends, indicating that the leverage contest at these two levels is quite balanced. The current price is like a person dancing on a tightrope, with less than $4,000 buffer on either side.

What Market Sentiment Is Saying

Looking at recent market signals, the situation has become more complex. According to the latest data, Coinbase Bitcoin premium index has been in negative premium (-0.0837%) for three consecutive days, which typically reflects strong selling pressure in the US market and a decline in investor risk appetite. Meanwhile, funding rates on mainstream CEXs and DEXs show a bearish market bias, further confirming the market’s pessimistic outlook.

The liquidation data from the past 24 hours is also not optimistic: total liquidations across the network reached $4.06 billion, with longs accounting for $3.32 billion. This indicates that bullish traders are already paying the price.

How to Interpret These Data

The liquidation chart does not show the exact number of contracts waiting to be liquidated but rather the relative importance of each liquidation cluster, i.e., the strength. Higher “liquidation columns” indicate that when the price reaches those levels, liquidity waves will generate stronger reactions. In other words, $8.22 billion does not mean that this amount will necessarily be liquidated, but if that price is triggered, the market will experience a significant liquidity shock.

The risk of short liquidation above

Reaching $94,492 requires a 4.6% increase. If achieved, those betting on a decline will be wiped out, and the $8.22 billion liquidation strength suggests this process could be intense. However, based on current market sentiment, the momentum in this direction is insufficient—negative premium and bearish funding rates are both signaling “don’t go long.”

The risk of long liquidation below

Falling to $86,587 requires a 4.2% decrease. From the perspective of liquidation pressure, this level’s $8.22 billion strength is also significant. Considering that recent long positions have already experienced large-scale liquidations, the risk of further decline might be even more concerning.

What Traders Need to Know

This situation tells us a few things. First, the current price is in a relatively fragile zone with clear liquidation pressures both above and below. Second, market sentiment is bearish, which means the downside risk might be more easily triggered. Third, the appearance of $8.22 billion at both ends indicates that leverage contest is quite balanced, but once either side is triggered, it could lead to a strong chain reaction.

Personal opinion: in this scenario, high-leverage trading is essentially betting that liquidations won’t happen, which is usually not a good idea. If you trade, setting proper stop-losses is more important than anything else.

Summary

BTC’s current symmetrical liquidation pressure of $8.22 billion reflects a highly balanced but risky market state. The levels of $94,492 above and $86,587 below are clear “danger zones,” with the current price right in the middle. Coupled with negative premium and bearish sentiment, the downside risk warrants more attention. During this period, caution and risk management should take priority over aggressive trading.