BTC is caught between $1.897 billion long liquidation and $1.609 billion short liquidation. Where is the key level?

According to the latest news, BTC is currently at an interesting position. If it falls below $88,909, the cumulative long liquidation strength on mainstream CEXs will reach $1.897 billion; conversely, if it breaks above $98,124, the short liquidation strength will reach $1.609 billion. The current BTC price of $93,584 just sits between these two key levels, indicating that whether it moves up or down, a significant liquidation scale is waiting.

Market Structure Revealed by Liquidation Strength

Long positions are more crowded

The $1.897 billion long liquidation strength is clearly larger than the $1.609 billion short liquidation strength, reflecting that long positions are more concentrated in the current market. In other words, bullish traders hold larger positions, which means both upward potential and increased downside risk.

Once BTC drops below the support level of $88,909, a large number of longs will be forced to close, and the resulting stop-loss selling pressure could further accelerate the decline. That’s why liquidation strength is an important indicator traders focus on—it directly reflects the market’s vulnerabilities.

Short defenses are relatively weak

In comparison, the $1.609 billion short liquidation strength is much smaller. This indicates that the short-side defenses are less dense than the longs, but it doesn’t mean shorts lack strength. Breaking above $98,124 may be more difficult than breaking below $88,909 because the short liquidation scale is smaller and insufficient to generate a strong rebound momentum.

Implications of the Current Price Position

BTC’s current price of $93,584 is in the middle of these two key levels, which has several implications:

• Support below: $88,909 is an important defense line; holding this level keeps the bulls in control
• Resistance above: $98,124 is a short-term target, but breaking through will require overcoming the pressure from short liquidations
• Current state: Bulls are slightly in the lead, but upward momentum is weakening

According to recent data, BTC has risen 6.52% over the past 7 days, but technical analysis shows that the upward momentum is waning—trading volume is decreasing, and the MACD histogram is gradually shortening, indicating that the current rally may need more confirmation.

Signals from Institutional Behavior

Interestingly, despite the liquidation data indicating market risks, institutional investors’ actions are relatively optimistic. According to recent reports, whale and shark addresses holding between 10 and 10,000 BTC have accumulated a total of 56,227 BTC since December 17, which is seen as a sign of a local market bottom. Meanwhile, the total Bitcoin holdings of the top 100 global listed companies have surpassed 1.09 million BTC, with several companies continuing to add holdings over the past week.

This institutional accumulation contrasts with the current liquidation data: on one hand, many long positions are at risk, but on the other hand, long-term investors are still steadily accumulating. This often suggests that the market may be consolidating in a sideways pattern.

Key Focus for Follow-up

In the short term, $88,909 is a critical support level. Falling below this could accelerate a decline due to long liquidations. Conversely, breaking above $98,124 is also challenging because of the smaller short liquidation scale, which may limit rebound strength.

Summary

BTC is currently at a relatively balanced but risky position. The $1.897 billion long liquidation strength far exceeds the short liquidation strength, indicating that long positions are more crowded, and caution is needed regarding downside risks. $88,909 is a key support, and $98,124 is a short-term resistance.

From institutional accumulation and technical analysis, the overall market remains bullish, but upward momentum is weakening. The most important factors now are whether BTC can hold above $93,584 and whether it can break through the short-term resistance at $98,124. If it can break through and stabilize, there could be more room for upward movement; otherwise, a drop below $88,909 could trigger a chain reaction of long liquidations.