Bitcoin is only $1,000 away from the $638 million liquidation trap, as the bulls and bears battle enters a critical moment

According to the latest on-chain data, Bitcoin is currently at a delicate juncture. The current price is around $89,493, while the $88,000 level below hides a $638 million long liquidation strength. At the same time, the $91,000 level above has a $1.034 billion short liquidation strength. This means that whether breaking upward or downward, large-scale liquidity waves could be triggered.

What Does Liquidation Strength Really Mean?

Coinglass’s liquidation chart data needs to be accurately understood. It doesn’t mean there are $638 million worth of contracts waiting to be liquidated, but rather shows the degree of impact at specific price levels. Higher liquidation bars indicate that when the price reaches that level, market reactions will be more intense due to liquidity waves.

Simply put, the higher the liquidation strength at a certain price, the more violent the “chain reaction” when the price arrives. Current data shows:

• Below $88,000: $638 million long liquidation strength
• Above $91,000: $1.034 billion short liquidation strength

This suggests that the short squeeze pressure is relatively greater, but longs also face significant risks.

How Dangerous Is the Current Price?

Bitcoin at $89,493 has only about $1,000 of downward risk space from the $88,000 support level. Based on the current trend of a 0.09% increase per hour and a 0.29% decrease over 24 hours, this distance could be reached in a single volatility move.

Recent market data shows Bitcoin has repeatedly tested the 91,000 range, with a low of $90,700. This indicates that the $88,000 support is being repeatedly tested by the market, and a breakdown could trigger large-scale long liquidations.

Long vs Short Forces

From the liquidation strength perspective, the risk for shorts is greater—$1.034 billion vs. $638 million, with short liquidation pressure exceeding longs by over 60%. But this also reflects the current market game:

This asymmetric liquidation pattern often attracts arbitrageurs and trend followers. Once the price breaks in either direction, a liquidity waterfall could be triggered.

The Broader Market Context

Bitcoin is in a special period:

• Consolidation Window: Fluctuated between $80,000 and $98,000 over the past 59 days, approaching a breakout after a 60-day consolidation period in history
• Institutional Moves: Strategy added 22,305 BTC at an average price of $95,284 last week, holding a total of 709,715 BTC, showing institutional confidence in the future market
• Whale Activity: 1,149 BTC (worth $106.2 million) recently transferred; wallets dormant for 12 years activated, transferring $84 million worth of assets
• Policy Environment: ARK Fund’s latest report suggests gold has peaked, and funds are flowing into Bitcoin and other low-correlation assets

These signals intertwine, showing both bullish sentiment and the potential for short-term volatility.

What to Watch Next

From a technical perspective, the $88,000 and $91,000 liquidation levels have become a “pivot” for the price. Breaking either one will trigger a chain reaction. The key question is, which side will be broken first?

Latest data shows Bitcoin’s weekly trading volume has decreased by 37.12% compared to the previous day, and such volume cooling often precedes larger price swings in history. Coupled with the fact that the market is at the end of a consolidation phase, a breakout may be imminent.

Summary

Bitcoin is at a delicate crossroads. Below, a $638 million long liquidation trap at $88,000; above, a $1.034 billion short liquidation trap at $91,000. What is the market waiting for? Possibly a strong enough signal to break the current balance. Institutions are increasing holdings, whales are transferring assets, the consolidation period is ending, and a breakout could be near. Whether upward or downward, the upcoming volatility warrants close attention.