Bitcoin wobbles on the edge: $662 million waiting for liquidation

LiquidationSurvivor · 2026-01-12T08:54:19+00:00

Bitcoin is at a critical point, with a potential drop below $86,000 risking $662 million in long liquidations. Conversely, breaking above $89,000 could lead to only $240 million in short liquidations, indicating a greater risk of declines than gains for traders.

LiquidationSurvivor

2026-01-12 08:54:19

Abstract generation in progress

The Bitcoin market is once again at a critical juncture. According to the latest data from Coinglass, the current price configuration poses a potential threat to long positions on major centralized exchanges.

Bearish Scenario: When $86,000 Becomes a Critical Level

If Bitcoin drops below $86,000, serious problems could surface. The total liquidation force of long positions could reach as much as $662 million. This means that around this level, the price could encounter a liquidity wave that might accelerate further decline.

Considering the current BTC price at $90.51K, a marginal decrease could trigger a cascade of liquidations. This amount — $662 million — represents a significant flow of potentially sellable capital.

Asymmetry on the Upside

The situation looks more optimistic on the upside. If Bitcoin breaks through the $89,000 level, the short liquidation force would drop to just $240 million. This indicates a clear asymmetry — breaking resistance requires less liquidity than avoiding support.

What does “liquidation force” mean?

It’s important to understand what exactly the liquidation chart data implies. The bars do not represent the exact number of contracts waiting for liquidation or precise values. Instead, they show the relative significance of each liquidation cluster — its strength relative to neighboring price levels.

A higher “liquidation bar” suggests that reaching this price would trigger a more intense market reaction. This is the result of a liquidity wave that could be released at this specific point.

Practical Implications for Traders

The current market picture indicates higher sensitivity to declines than to rises. Bitcoin is around $90.51K, providing some cushion against this critical $86K level, but the gap is smaller than it might seem in an unstable environment.

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