BTC is under liquidation pressure, with long positions totaling $1.472 billion.

According to the latest news, the current BTC price hovers around $90,430, between two key liquidation levels. If it breaks below $85,901, the cumulative long liquidation strength on mainstream CEXs will reach $1.472 billion; if it breaks above $94,825, the cumulative short liquidation strength on mainstream CEXs will reach $1.305 billion. This means that regardless of which direction the price moves, there is a significant liquidation risk.

Key Levels and Liquidation Strength Analysis

The current price is about $5,000 away from both key levels, indicating the market is in a relatively balanced but risky state. A drop below $85,901 requires about a 4.6% decline, while a break above $94,825 requires about a 4.8% increase.

Greater pressure on long liquidations

From the data, the long liquidation strength ($1.472 billion) is slightly higher than the short liquidation strength ($1.305 billion), with a difference of approximately $167 million. This reflects a relatively high accumulation of long positions in the current market. If the price breaks below support, it could trigger a stronger chain of liquidations.

Market sentiment leans bearish

This data is consistent with recent market sentiment indicators. According to the latest news, Coinbase Bitcoin premium index has been in negative premium for three consecutive days (currently at -0.0837%), indicating significant selling pressure in the mainstream US market. Meanwhile, funding rates on major CEXs and DEXs show a generally bearish outlook, further confirming the dominance of bearish sentiment.

Historical Comparison and Risk Assessment

Trends in liquidation strength

Comparing recent days’ data, the liquidation strength shows volatility:

• Jan 7: Longs $508 million (below 91,000), Shorts $256 million (above 93,000)
• Jan 8: Longs $1.07 billion (below 90,000), Shorts $417 million (above 92,000)
• Jan 9: Longs $1.472 billion (below 85,901), Shorts $1.305 billion (above 94,825)

This trend indicates that as price volatility increases, leverage positions in the market are accumulating. The rising liquidation strength suggests that once key levels are triggered, a stronger liquidity wave could occur.

Why is long liquidation strength increasing?

From historical data, long liquidation strength increased from $508 million to $1.472 billion, an increase of about 190%. There are two possible reasons: first, longs continue to add positions during rebounds; second, market participants have established more long-term bullish positions within the current price range. However, market sentiment indicators (negative premium, bearish funding rates) show these long positions are under increasing pressure.

Follow-up Focus Points

Short-term risk assessment

Technically, the current position is between two key levels. Any breakout in either direction could trigger large-scale liquidations. If the price drops and support at $85,901 breaks, it could cause a chain liquidation of $1.472 billion, accelerating the decline. Conversely, a break above $94,825 could trigger a short squeeze worth $1.305 billion.

Significance of sentiment indicators

The negative Coinbase premium and bearish funding signals suggest that the current market risk appetite remains low. This means that even if longs attempt a rebound, the overall market willingness to buy is weak, putting pressure on longs to break through the upper key levels.

Summary

BTC is currently caught between two major liquidation levels, with $1.472 billion in long liquidation pressure and $1.305 billion in short liquidation pressure, both posing significant risks. Data shows that long liquidation pressure is slightly higher, aligning with the overall bearish market sentiment. The key levels at $85,901 and $94,825 are critical; a successful breakout of either could trigger substantial liquidity reactions. Investors should closely monitor the defense at these levels and consider sentiment indicators like Coinbase premium for a more accurate assessment of the market’s true direction.