- Bitcoin liquidations spiked as the price reached $89,666, wiping out leveraged trades.
- Binance saw the highest liquidations, with orders surpassing $100 million in losses.
- Short liquidations have now exceeded $10 billion, fueling increased market volatility.
Bitcoin’s latest price movement has triggered a liquidation frenzy across major exchanges, with on-chain data from Coinglass revealing huge leverage wipeouts. As BTC climbed to $89,666, traders positioned with overleveraged longs and shorts faced severe liquidations. The cumulative short liquidation leverage has surged past $10 billion, while long liquidations have stabilized around $5.5 billion, highlighting a growing imbalance in market positioning.
Rising Leverage Signals a Volatile Market
Data indicates that as Bitcoin’s price surged toward $89,666, liquidations spiked across Binance, OKX, and Bybit. Binance’s share of the liquidations is visibly dominant, with bursts of high-leverage liquidations aligning with sharp price movements. OKX and Bybit contribute significantly, but the dominance of Binance remains evident in the volume of liquidations that reached peaks above $200 million in some trading sessions.
The chart suggests that short liquidations have risen exponentially, while long liquidations have gradually declined. The short liquidations, represented by the teal line, show an exponential rise beyond the 10 billion-dollar mark, coinciding with Bitcoin’s price breaking through key resistance levels. Meanwhile, long liquidations, which initially hovered near $200 million, began declining after BTC crossed the $80,000 threshold, indicating that many traders had already adjusted their risk exposure.
Key Liquidation Zones and Exchange Breakdown
A detailed breakdown of the liquidation clusters shows that Bitcoin faced the most liquidation pressure around $88,397, just before its climb to $89,666. This suggests that many traders had leveraged positions around this level, expecting either a reversal or a breakout. However, as Bitcoin surpassed the threshold, a liquidation cascade ensued, further fueling price movement.
Binance recorded the largest single liquidation event, with orders exceeding $100 million, reflecting forced closures of high-leverage positions. OKX and Bybit also saw elevated activity, with combined liquidations exceeding $500 million in the past 30 days. The liquidation heatmap indicates that $90,000 remains a psychological barrier, as the leverage buildup shows increased volatility beyond this level.
Related: Bitcoin Volatility Surges as Kiyosaki Criticizes Panic Sellers
Market Implications and Future Outlook
With the cumulative short liquidation leverage climbing past $10 billion, traders should expect continued volatility, especially as Bitcoin approaches untested price levels. Historically, such liquidation-driven movements have preceded sharp corrections or breakouts, depending on liquidity depth and macroeconomic conditions.
