On April 23, Bitcoin surpassed the $94,000 mark, igniting a flurry of liquidations across crypto markets as a staggering amount of $635.9 million was wiped out in just 24 hours. According to data from CoinGlass, over $560 million of those liquidations were tied to short positions, which indicates a significant strain on traders betting against the cryptocurrency. Bitcoin was at the forefront, with $230 million of short positions being cleared, while Ether followed suit, losing over $109 million in short liquidations as its price spiked to $1,787, a nearly 10% surge.

Binance Leads in Liquidations

Binance appeared as the exchange with the largest share of liquidations during a recent four-hour window, and registered $18.7 million, with 78% of that coming from short positions. Both Bybit and OKX reported significant liquidation volumes, which indicates the volatility across the markets.

Bitcoin: A Short Squeeze Predictor

Bitcoin’s rapid ascent to $94,236, with a 6.29% increase in just one day, has sparked speculation that the cryptocurrency could be on the verge of a short squeeze. Many traders are now watching closely for signs that the price may push past $100,000. Crypto analyst Mister Crypto shared a Binance heatmap that showed the growing concentration of liquidation orders around the $100,000 level.

He posted that

“liquidity is piling up around $100,000,”

He expressed that if these positions are triggered, Bitcoin’s price could rise even higher, adding more fuel to the bullish sentiment.

What is a Short Squeeze?

A short squeeze occurs when traders who bet against the asset are forced to close their positions, often by purchasing the asset, which results in further price increases. Mister Crypto pointed out that bearish traders have started to feel the pressure as Bitcoin continues to gain ground.

Caution from Experts

Despite the excitement surrounding Bitcoin’s climb, some remain cautious about whether it can maintain its momentum. “Bitcoin’s climb to $94K reflects renewed global optimism, but its path to $100K remains uncertain,” Vincent Liu, chief investment officer at Kronos Research, told Cointelegraph.

He said the outcome of the May 6 Federal Open Market Committee (FOMC) meeting, ongoing trade negotiations with India and China, and broader macro conditions will be critical. He added:

“Cleared tariffs and potential Fed rate cuts could ignite further momentum, while rate hikes or unresolved tensions may keep BTC range-bound. US monetary policy will be pivotal in determining if Bitcoin reaches this milestone.”

Market Sentiment

The surge in short liquidations, combined with Bitcoin’s climb to a 45-day high, paints a picture of a highly leveraged market. As positions continue to build around the $100,000 level, the question remains: Can Bitcoin sustain this momentum, or will the rally hit a wall before reaching the six-figure mark? Traders are keeping a close eye on how the market unfolds. The upcoming weeks are expected to be crucial in determining whether Bitcoin can break through this psychological barrier.