Bitcoin (BTC) is knocking on the door of a historic short squeeze.
With the digital asset trading above $105,500, over $13 billion worth of leveraged short positions across major exchanges like Binance, Bybit, and OKX are hanging by a thread, according to fresh data from Coinglass, retrieved by Finbold on June 17.
The liquidation heatmap doesn’t lie, if Bitcoin surges past $118,000, we could witness one of the largest mass short liquidations in crypto history.
The chart breaks down where leveraged positions are most concentrated—and, more importantly, where they’re most vulnerable. On the right-hand side, the rising green curve represents short liquidation leverage.
What makes this setup especially dangerous for shorts is the way the green line steepens past $110,000. That sharp upward curve means a growing pile of leverage is waiting just above the current market price. The moment BTC starts inching toward those levels, a chain reaction could be triggered, trapping late sellers and slingshotting Bitcoin upward.
In simple terms, this shows how much money traders have bet against Bitcoin going up. If BTC climbs, these short positions start bleeding. And if it climbs fast? They’re forced to close, automatically, by exchanges. That process is called liquidation.
Liquidations don’t happen quietly. When shorts get closed, the traders must buy Bitcoin to settle their losses. That sudden burst of buying adds fuel to the fire, pushing prices even higher and forcing more shorts to close. It’s a vicious cycle for the bears. This cascading effect is known as a short squeeze, and right now, the chart is flashing a textbook setup.
It’s not just theoretical. We’ve seen it before in past cycles. The 2020 breakout past $20,000? Similar mechanics. The $30,000 rally in early 2021? Same story.
Bitcoin short liquidation leverage summary
For beginners, this chart might seem intimidating. But here’s the simple takeaway: it shows where leveraged traders are likely to get wiped out. And right now, those at risk are the ones betting against Bitcoin.
The fact that $13 billion in short exposure exists just overhead is a strong bullish signal. Not because that money guarantees upward movement, but because it reveals just how unstable the current positioning is. If a catalyst appears, whether ETF inflows, macro easing, or more institutional headlines such as BlackRock, the move could be explosive, not gradual.
Featured image via Shutterstock
