Market data suggests that a major short squeeze could be forming, as large liquidation clusters are building up above the current price level.

According to Crypto Rover, cumulative short liquidations now exceed $14 billion across major exchanges, compared to just $260 million in long liquidations. This imbalance could trigger a sharp upside move if Bitcoin begins to reclaim key resistance levels.

At the time of writing, Bitcoin trades at $108,484, consolidating near the lower boundary of a critical technical zone.

Key Technical Levels

Market analyst Rekt Capital noted that Bitcoin is currently testing the 21-week exponential moving average (EMA), which has acted as a crucial mid-term resistance in previous cycles. The price is hovering just above the historical demand area near $108,000, a region that needs to hold for bulls to maintain momentum.

Rekt Capital emphasized that maintaining this zone as support is essential for Bitcoin to form a new higher low and eventually challenge the 21-week EMA again.

Sideways Accumulation Phase

Meanwhile, Michaël van de Poppe analyzed the monthly chart, describing the current setup as a period of “sideways consolidation” with no clear top or bottom in sight. He believes Bitcoin is preparing for its next major breakout, noting that the long-term structure still supports a continuation of the broader bull trend.

“The chart shows no peak, no bottom – just consolidation before the next breakout upwards,” van de Poppe wrote.

What to Watch Next

If Bitcoin manages to reclaim $111,000, a wave of short liquidations could accelerate the price higher, possibly testing the $115,000–$120,000 range. Conversely, failure to hold above the $108,000 support could expose the market to further downside pressure toward $105,000.

The growing volume of leveraged short positions has increased the likelihood of a volatile move in either direction, with analysts closely monitoring for signs of breakout confirmation.

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