 ▲ Bitcoin (BTC), Ethereum (ETH), Forced Liquidation/ChatGPT-Generated Image |
Bitcoin (BTC) is on the verge of breaking through a major resistance level, warning of the potential for massive liquidations of short-sellers who have bet on a decline.
According to crypto media outlet BeInCrypto on March 10 (local time), if Bitcoin breaks above a key resistance zone, a large-scale liquidation of short positions could follow, triggering a short squeeze—a surge driven by forced buying as traders cover or close short positions. Bitcoin recently rebounded successfully from its February low of $62,900 and reclaimed the $70,000 level, confirming strong buying momentum. Market experts analyze that investors betting on further declines have reached a critical threshold, where even a small inflow of capital could ignite a chain reaction of forced buying.
From a technical perspective, Bitcoin is currently battling around the $71,300 level, the resistance line of a bear flag pattern on the three-day chart. If the price decisively surpasses this zone and secures the $79,000 range, the existing bearish scenario would be completely invalidated, potentially unlocking unprecedented upward momentum. On March 5, when Bitcoin broke above $71,000, approximately $110 million worth of short positions were liquidated in a short period, exerting strong upward pressure on the market.
On-chain data analysis shows that whale investors managing substantial capital have been steadily accumulating Bitcoin amid widespread market fear. Despite the Fear and Greed Index remaining at 19, indicating Extreme Fear, large wallets holding between 100,000 BTC and 1 million BTC have accumulated an additional 13,460 BTC since mid-February. Such accumulation by whales reduces circulating supply, intensifies supply constraints, and serves as a decisive factor in amplifying price spikes if a short squeeze occurs.
Although macroeconomic uncertainties such as geopolitical risks and oil price volatility persist, Bitcoin’s structural supply-demand imbalance is increasingly viewed as an opportunity. With outflows from U.S. spot Bitcoin ETFs recently slowing and signs of institutional re-entry emerging, traders who had bet on declines are facing mounting anxiety. Experts warn that the current market structure is highly unfavorable for sellers and that once the critical resistance is broken, prices could surge vertically to $80,000 or higher within a short period.
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