$3B in Shorts Face Liquidation if BTC Hits $117K

If Bitcoin touches $117K, $3 billion in short positions will be liquidated.

  • $3B in shorts could be wiped out at $117K BTC
  • Massive liquidation may fuel more bullish momentum
  • Traders should brace for increased volatility

Bitcoin’s recent rally is turning heads, and a key price milestone could bring even more fireworks. According to data from futures markets, $3 billion in Bitcoin short positions are set to be liquidated if BTC touches $117,000. That level is now in sharp focus as the market heats up.

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This potential liquidation event could inject even more fuel into Bitcoin’s upward momentum. Here’s what it means for traders and the broader market.

What Happens When Shorts Get Liquidated?

A short position is a bet that the price of Bitcoin will go down. When the market moves against that bet — in this case, if Bitcoin rises — traders are forced to exit those positions, often by buying BTC to cover their losses. This creates what’s known as a short squeeze.

If Bitcoin hits $117K, a massive $3B worth of shorts will be liquidated. That’s not just a loss for bearish traders — it’s a bullish signal that could push prices even higher as forced buying pressure floods the market.

Bullish Pressure Mounts

As Bitcoin climbs, more short positions hit their liquidation levels, triggering automatic market buys. This creates a loop of rising prices and further liquidations. Traders should be aware of this risk-reward dynamic.

Additionally, this kind of setup often draws in more bullish sentiment, with investors betting on the upside. If momentum holds, the liquidation level at $117K could act as a launchpad for even higher valuations.

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Disclaimer: The content on CoinoMedia is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments carry risks, and readers should conduct their own research before making any decisions. CoinoMedia is not responsible for any losses or actions taken based on the information provided.

Ava Nakamura

Ava Nakamura is a seasoned crypto journalist and blockchain enthusiast who has been covering digital assets since 2017. With a sharp eye for market trends and a passion for decentralization, Ava breaks down complex crypto topics into engaging stories. She covers Bitcoin, altcoins, DeFi, and everything in between — aiming to empower readers through knowledge.

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