Bitcoin (BTC) on Verge of Epic $600 Million Short Squeeze: Details

Bitcoin's price seems to be steadily rising during today's session, but there is some pressure building just above the current levels.

As reported by analyst Ali Martinez, if $BTC goes to $86,900, it could trigger a major liquidation event, as there are more than $600 million in short positions exposed at this crucial price point.

This is not just some random number. It represents traders who are highly leveraged — many of whom are sitting on 50x to 100x positions — and are now dangerously close to the edge. The total short liquidation leverage right now is $615.42 million, with $1.51 million at 50x and $7.36 million at 100x in particular.

At press time, $BTC is around $83,950, and although it would need to rise about 3.5% to reach $86,900, the imbalance in positioning is abnormal.

If Bitcoin hits that level, we are probably looking at a short squeeze in that area — the kind of move that can really pick up the pace through thin liquidity zones, forcing people to cover their shorts in real time.

Looking at the big picture, $BTC has been ranging, but the overall trend is starting to lean bullish again. If you look at the daily chart, you will see a slow, steady recovery after a pretty bumpy March and April. There is no clear breakout yet, but the potential setup is there.

But, and it is a major but, nothing is guaranteed. Everyone can see these liquidation levels, including whales, algorithms and bots. If the $86,900 level becomes a magnet, expect volatility to spike, possibly triggering reflexive price action on both sides of the book.