Bitcoin began January with a 7.4% rebound that redirected attention to the Bitcoin liquidation map. According to analyst Crypto Dan, reclaiming the historical cost basis is fundamental for the bulls. This technical movement shows an asymmetry that could accelerate the price toward new historical highs soon.
Additionally, CoinGlass data reveals a strong imbalance in the market leveraged positions currently. There are more than 10.6 billion in long liquidations located below 84,000 dollars at this time. Thus, a sharp drop could generate automatic sell pressure on a massive scale. Conversely, short positions only accumulate 2 billion dollars above the 104,000 mark.
On the other hand, trader ChimpZoo described the retail setup as something totally absurd and risky. Traders on Hyperliquid maintain short positions that are very vulnerable to fast price increases. Therefore, an unexpected rally would force massive liquidations in the market globally. This situation suggests that the path of least resistance could surprisingly be upward.
The technical consolidation necessary to reach the mythical six-figure frontier
Likewise, to confirm a real trend change, the asset must surpass the 100,000 dollar level. This level coincides exactly with the realized price of long-term investors at the moment. Therefore, confirming a structural trend change requires strength from constant institutional demand. Without this support, any rise could simply be a temporary relief before new pullbacks.
On the other hand, the existence of gaps in the CME futures market generates notable technical uncertainty. The gaps located between 90,600 and 91,600 dollars could be tested in the short term by price action. As a result, investors must be prepared for high volatility during the upcoming weeks of January. These levels often act as magnets before the market continues its intended path.
Will institutional demand be able to absorb the pressure from long liquidations?
However, the Bitcoin liquidation map indicates that the downside risk remains quite considerable for the asset. A correction toward 84,000 dollars would trigger very heavy automatic sell orders across exchanges. Nevertheless, the retail bias continues betting on drops that haven’t arrived yet to the market. Analysis suggests that liquidating these retail shorts could serve as significant bullish fuel.
Finally, the cryptocurrencies ecosystem is preparing for a decisive and volatile January month ahead. The price needs to stay above key supports to avoid chain liquidations that could be disastrous. In this way, the bullish structure will remain valid if bulls resist the pressure. The market watches closely to see if the six-figure barrier will finally fall under this asymmetrical scenario.
