BTC breakout or breakdown will trigger over $1.8 billion in liquidations

2026-01-22 14:02:42

According to the latest news, BTC is currently facing two key liquidation levels. If BTC drops below $85,119, the cumulative long liquidation strength on mainstream CEXs will reach $2.011 billion; conversely, if BTC breaks above $94,047, the cumulative short liquidation strength on mainstream CEXs will reach $1.861 billion. At the current BTC price of $89,560, both bulls and bears are in high-risk territory.

The Relationship Between Current Price and Liquidation Levels

BTC’s current price of $89,560 is between the two liquidation levels, with a buffer of $4,441 before the downward liquidation level at $85,119, and an upward space of $4,487 before the upward liquidation level at $94,047. This relatively balanced position reflects the current market stalemate between bulls and bears.

Looking at recent price movements, BTC has risen 1.09% in the past 24 hours but fallen 7.50% over the past 7 days, indicating high market volatility. In such an environment, leveraged traders face significantly increased risks.

Market Leverage Behind Liquidation Scale

Liquidation Direction	Trigger Price	Liquidation Scale	Distance from Current Price
Long Liquidation	$85,119	$2.011 billion	$4,441 lower
Short Liquidation	$94,047	$1.861 billion	$4,487 higher

These figures reflect the market’s leverage scale. A long liquidation of $2.011 billion means that if BTC falls below this level, a large number of long positions will be forcibly closed, potentially accelerating the decline. Similarly, the $1.861 billion short liquidation scale indicates that once BTC breaks above the key upper level, bears will also face significant pressure.

Current Market Risk Status

According to the latest data, total liquidation in the past 24 hours has reached $603 million, with longs liquidated at $304 million and shorts at $299 million. This shows that leverage activity remains active, and risk release continues.

Notably, there have been large whale liquidation events recently. Reports indicate that the largest short on Hyperliquid, “Air Force Commander,” was recently liquidated for $199 million, with the largest single liquidation reaching $40.22 million. Such large-scale liquidations often trigger chain reactions in the market.

Risk Assessment

Based on current data, the main risks facing the market include:

Bullish risk: If BTC drops below $85,119, the $2 billion-level long liquidation could trigger a cascade of sell-offs.
Bearish risk: If BTC breaks above $94,047, the $1.8 billion-level short liquidation could push prices further up.
Chain reactions: Large liquidations can force other leveraged traders to liquidate as well.
Increased volatility: Both liquidation levels will serve as key support or resistance points in the market.

Summary

BTC is currently “standing on the tip of a sword” between two massive liquidation levels, with nearly $20 billion in liquidation pressure accumulated on both sides. Any breakout—up or down—could trigger large-scale liquidation events. This market structure means that any directional breakthrough will be accompanied by intense volatility. For traders, understanding these liquidation levels can help better assess market risks. The key question moving forward is whether BTC can find a new balance within this range or break through in one direction.

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