Bitcoin Shorts Liquidation Looms at $120K Level

Coinomedia2025/07/31 07:00

By:Aurelien SageAurelien Sage

A $2.3B wall of Bitcoin shorts is set to be liquidated near $120K, possibly triggering a major BTC breakout.Why $120K Matters for BitcoinBulls Gaining Control

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold. Trade now!

A welcome pack worth 6200 USDT for new users! Sign up now!

$2.3 billion in Bitcoin shorts are concentrated around $120K
A breakout above this level could lead to a strong BTC rally
Market sentiment is turning bullish as bears face liquidation

Bitcoin is inching closer to a key resistance level near $120,000 — and with it comes the potential for a major shift in market momentum. Currently, there is an estimated $2.3 billion in short positions stacked around this critical price zone. If Bitcoin breaches this level, it could spark a powerful wave of short liquidations, catapulting the price even higher.

Short liquidations occur when traders betting against the market are forced to buy back into their positions as the price rises, creating a cascade effect that pushes the price upward even faster. This setup is exactly what many bullish traders are eyeing now.

Why $120K Matters for Bitcoin

The $120,000 mark is not just a psychological milestone but also a strategic battlefield. A massive concentration of shorts suggests many traders expect BTC to retrace from here. But if Bitcoin breaks through this resistance, those positions may be forcibly closed — known as a “short squeeze” — driving aggressive upward price action.

Historically, such squeezes have triggered rapid BTC surges, sometimes adding thousands of dollars in value in mere hours. With the crypto market already showing renewed strength, this breakout could mark the start of another parabolic rally.

💥BREAKING:

BITCOIN BEARS ARE ABOUT TO GET LIQUIDATED

$2.3 BILLION wall of $BTC shorts waiting around $120,000.

Once we break it, we will fly higher. pic.twitter.com/HLV9cPcXUw
— Rekt Fencer (@rektfencer) July 30, 2025

Bulls Gaining Control

The growing pressure on bearish positions suggests that bulls are beginning to dominate the market narrative. With increasing institutional interest, halving hype, and broader crypto optimism, the fundamentals are aligning for Bitcoin to push beyond $120K.

As always, volatility is expected, but current market conditions hint that bears may soon be forced to retreat — with a massive $2.3 billion liquidation wall potentially fueling Bitcoin’s next explosive move.

Read Also :

Whales Sell as Institutional Bitcoin Demand Surges
ETH Narrative Shift Boosts Institutional Adoption
BTC Holders Sit on $1.4T in Unrealized Gains
JASMY Eyes 1,650% Surge Toward $0.2785 Target
FG Nexus Secures $200M for Ethereum Treasury Strategy

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.

Trade now！

After Jensen Huang's speech, CoreWeave's stock price, which had fallen by as much as 9.5% in early trading, turned positive. The company's five-year CDS rose above 1,190 basis points during Thursday’s session, a historical high reflecting the cost of debt default protection, while yields on some of its corporate bonds have climbed above 15% to 16%. The five-year CDS spreads for Oracle, Amazon, Google’s parent company, and Meta are all at historically high levels. Deutsche Bank analysts believe that as the AI capital expenditure cycle is increasingly supported by debt rather than free cash flow, investors must place greater emphasis on signals from the credit market. Overall, while AI-related financing costs are not yet excessively high, worrying signs have begun to emerge.

华尔街见闻•2026/10/15 21:36

CoreWeave default probability exceeds 60%! Jensen Huang "puts out the fire": Financing costs are declining, no need for NVIDIA to backstop

Bitcoin volatility trends show Bitcoin is less volatile than 57% of S&P 500 stocks

Cryptonomist•2026/10/15 21:16

Wall Street is wary of Bessent making another move to suppress yields; key clues may emerge this Friday

This Friday, major primary dealers of government bonds will receive the U.S. Treasury's routine survey before the refinancing announcement is released. Citigroup expects the survey may hint at a reduction in long-term bond issuance, or even the cancellation of 20-year U.S. Treasury bonds. Morgan Stanley emphasizes: "The next two refinancing announcements will be crucial, especially the one in November, which comes right after the midterm elections."

华尔街见闻•2026/10/15 21:06

Risk aversion outweighs inflation concerns, US and European government bonds rise across the board, US Treasury yields plunge more than 10 basis points intraday

Investors concerned about rising inflation are shifting their focus to the potential impact of high borrowing costs on economic growth. Some commentators have linked the recent decline in U.S. Treasury yields to surging financing costs for AI-related companies, suggesting that pressure in the technology stocks and AI infrastructure sectors is driving funds toward safe-haven assets such as government bonds.

华尔街见闻•2026/10/15 20:27