- $17B in Bitcoin shorts could be wiped out with a 15% move.
- A short squeeze may trigger rapid price acceleration.
- Market watchers eye key resistance for breakout.
$17 Billion in Shorts at Risk as BTC Nears Critical Level
Bitcoin is inching closer to a possible short squeeze that could wipe out $17 billion worth of short positions. The catch? It only needs to climb another 15% to hit the liquidation threshold for most of those bearish bets.
Short positions are essentially bets that the price of Bitcoin will go down. But if BTC rises sharply, short sellers are forced to buy back at higher prices to cover their losses — creating a cascade of buy orders that sends the price even higher. This is known as a short squeeze, and it can fuel powerful rallies in a very short time.
Why the Market Is Watching Closely
The setup is already forming. Leverage in the system is rising again, and funding rates are showing signs of stress on the short side. The last time similar conditions aligned, Bitcoin exploded upward in a matter of days.
Analysts are watching resistance levels closely, especially around recent local highs. If BTC can break through with volume, that 15% move could happen fast — and $17B in shorts could be forced to exit, adding rocket fuel to the rally.
Is a Short Squeeze Imminent?
While a short squeeze isn’t guaranteed, the risk is building. A combination of rising spot demand, stablecoin inflows, and global macro catalysts (like ETF flows or weakening fiat confidence) could provide the final push.
For now, all eyes are on Bitcoin’s next move. If bulls take control, the liquidations could trigger a move much larger than 15% — turning resistance into launchpad.
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