Bitcoin is approaching a key resistance zone around $80,000, where over $4 billion in short positions are vulnerable to liquidation. This liquidity imbalance emerges after BTC found solid support near $76,100, showing bullish momentum and technical patterns that suggest a potential sharp rally.
On shorter time frames, Bitcoin displayed a bullish divergence on the relative strength index (RSI), with higher lows around $76,100 indicating strengthening buyer interest. Additionally, BTC tested the $78,000 level after repeatedly defending its prior support, while price action formed an inverse head-and-shoulders pattern under a descending trendline—a technical formation often signaling a weakening downtrend and imminent breakout.
If Bitcoin breaks above $78,000, it could revisit a so-called fair-value gap—a low-liquidity price range between roughly $79,500 and $80,300—left untraded during a previous selloff. Filling this gap often acts as a magnet for price action before the next directional move.
Data from CoinGlass reveals a stark imbalance in leveraged risk. More than $4 billion in short positions lie above current price levels, exceeding the $3 billion in long positions vulnerable below $75,000. This setup places significant pressure on short sellers if Bitcoin continues its upward trajectory. Over the last 24 hours, liquidations accelerated, with nearly 104,000 traders closed out and total liquidations hitting $286 million, predominantly short positions. The largest single liquidation occurred on Binance’s BTCUSDT pair, exceeding $3 million.
Meanwhile, open interest in Bitcoin futures dipped slightly from 120,000 BTC to roughly 116,800 BTC, suggesting traders have somewhat reduced their leverage amid recent volatility. This decrease implies a more controlled derivatives market, with less overheated speculation. Interestingly, the spot market shows weak buying demand during Bitcoin’s recovery, indicated by a cumulative volume delta (CVD) around negative $483 million. Contrarily, futures net buying pressure turned slightly positive, with a small positive CVD and elevated funding rates, confirming a short-term bullish bias driven mainly by leveraged traders rather than spot buyers.
This divergence between weak spot participation and stronger futures demand highlights that the current upside momentum largely relies on derivatives markets. As a result, the $80,000 level stands out as a crucial test, with the potential to trigger substantial short squeezes and significant price moves.