BTC is under pressure from $841 million in liquidation strength, facing liquidity shocks with both upward and downward breakouts

2026-01-18 10:31:55

Bitcoin is currently trading around $95,096 but is tightly trapped between two key liquidation levels. According to the latest data, if BTC falls below $91,047, the total long liquidation strength on major CEXs will reach $841 million; conversely, if BTC breaks above $99,389, the total short liquidation strength on major CEXs will also be $841 million. This symmetrical liquidation pressure indicates that whether Bitcoin breaks upward or downward, it may face liquidity shocks.

Bidirectional Distribution of Liquidation Minefields

Currently, BTC’s price is some distance away from these two critical levels, but the market’s leverage structure has already formed a clear concentration of liquidations.

Direction	Key Price	Liquidation Strength	Current Distance
Downside risk	$91,047	$841 million	About $4,049
Upside risk	$99,389	$841 million	About $4,293

This symmetrical distribution of liquidations reflects the typical psychology of market participants—both bullish leveraged longs and bearish leveraged shorts have accumulated large positions at their respective stop-loss levels.

What Does Liquidation Strength Mean?

According to Coinglass, the figures on the liquidation chart are not precise counts of contracts to be liquidated but are relative strength indicators. A liquidation strength of $841 million means that once the price reaches these levels, a strong chain reaction will occur due to liquidity waves. Higher liquidation bars will lead to more intense price fluctuations because a large number of stop-loss orders will be triggered simultaneously.

Current Market Leverage Situation

Combining recent on-chain data, market sentiment shows some divergence:

Since the beginning of the year, approximately 36,800 BTC (worth $3.493 billion) have been withdrawn from exchanges, indicating long-term holders are taking coins off the platform.
However, in the past 24 hours, there has been a net outflow of 347.51 BTC from CEXs, with Binance seeing the largest inflow, indicating institutional positioning.
In the past 24 hours, the entire network experienced $341 million in liquidations, with longs accounting for about 80%, suggesting downward volatility more easily triggers long stop-losses.

This indicates that the market has both leveraged long positions and defensive short positions, creating the current tense balance.

Risk Assessment of Price Breakouts

From the current position, BTC needs to rise about $4,293 to reach the upside liquidation level at $99,389, or fall about $4,049 to reach the downside liquidation level at $91,047. The distances in both directions are roughly equal, and this symmetry itself indicates a highly balanced market.

Once the price breaks in either direction and hits a liquidation level, the liquidity shock could amplify volatility. Especially if the price breaks quickly, triggering a concentration of stop-loss orders, it may trigger further chain liquidations.

Summary

BTC is currently caught between two liquidation levels with $841 million each, reflecting high market participation and also potential volatility risks. Whether breaking above $99,389 or dropping below $91,047, liquidity shocks may occur. Investors should pay attention to changes in trading volume and volatility as the price approaches these key levels—these are often signals that large-scale liquidations are imminent. Additionally, on-chain data shows institutional accumulation on dips, which may provide some support against downside risks, but the buildup of leveraged longs should not be overlooked.

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