Bitcoin’s price is climbing, and that’s making some traders very nervous. A huge amount of money – a whopping $9.41 billion – is riding on bets that Bitcoin won’t go up. If Bitcoin hits $90,000, these bets could be wiped out in a massive wave of liquidations.
The $90,000 Danger Zone
Crypto analyst Seth on X (formerly Twitter) highlighted this risky situation. A chart shows a massive concentration of short positions (bets against Bitcoin rising) between $80,000 and $90,000, with the biggest chunk at $90,000.
What happens if Bitcoin reaches $90,000? Traders who bet against Bitcoin will be forced to buy it back to cover their losses, causing a “short squeeze.” This buying frenzy can push the price even higher, creating a volatile situation. We’ve already seen a smaller example of this: a recent jump to $87,000 liquidated $77 million in short positions.
The Potential for a Breakout (and a Dip)
Another analyst, “Crypto Fella,” on X, sees a potential scenario where Bitcoin could dip before a major price surge. Their chart suggests a possible drop to between $70,000 and $78,692 before a rally towards a potential $94,655.
Current Situation and What to Watch
Right now, Bitcoin is around $83,029. That’s a relatively short distance to the $90,000 trigger point, representing a potential 8.39% increase. Traders are watching closely to see if Bitcoin can break through this key resistance level and what will happen next. The potential for significant volatility is high.
