2026-01-16 09:21:03

The recent surge in Bitcoin's price looks impressive, but if you dig deeper into the driving forces behind the market, you'll find an interesting phenomenon—what's really pushing prices up isn't "retail investors flooding in," but rather short squeeze caused by forced liquidations of leveraged traders.

Once the price breaks through a key support level, a large number of short traders instantly find themselves in danger, forced to cut losses and buy back. This wave of liquidations is significant; according to on-chain data, it's the largest short squeeze since October 2025. Interestingly, the peak of liquidations almost perfectly coincides with Bitcoin reaching a new cyclical high, indicating that the upward momentum is more driven by "forced covering" rather than fundamental improvements.

In the short term, millions of dollars in short positions are wiped out, and the price continues to rise under this momentum. If this pace continues, Bitcoin could theoretically surge toward the $100,000 or even $105,000 region. The question is, how long can this market sustain?

History shows us that any rally driven by liquidations ultimately faces the same test—can spot buying volume absorb the selling pressure? Once open contracts start cooling off and capital inflow slows, prices usually enter a phase of oscillation, making a continuous one-way rally unlikely.

Meanwhile, on-chain data also reveals another signal worth paying attention to—the attitude of veteran holders seems to be changing, which could indicate that new market pressure variables are brewing.

BTC-0.21%

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NftBankruptcyClub

· 4h ago

The price of the coins pushed up during the liquidation wave, to put it simply, is the scream of short positions being liquidated. How long can this last?

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All-InQueen

· 12h ago

The market surge caused by liquidation waves, to put it simply, is just short positions being forced to close. Can this continue? I don't believe so. In the end, it still depends on whether the spot market can absorb the pressure.

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HodlOrRegret

· 12h ago

Short liquidation pushes up the coin price? Haha, that's why I say technical rebounds are the most虚的. --- It's another wave of liquidations. It looks grand, but it's actually just forced covering. Nothing to get excited about. --- One hundred thousand dollars? Let's see if the spot market can hold up first, or it might just be a flash in the pan. --- Old holders' changing attitude is the real signal to watch out for. Don't just focus on the numbers. --- The rise driven by liquidations is the most虚水, history has already taught this lesson. --- So this surge is just虚火? I just want to know how long it can last. --- By the way, on-chain data shows老鲸鱼 in action. This is getting interesting. --- It's nothing more than leveraged positions exploding and capital flowing, don't mythologize it. --- If $100,000 actually comes in, it's not surprising. But what's more important is what happens next. --- After open interest contracts cool down, this market should wake up.

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MevHunter

· 12h ago

The upward momentum driven by liquidations sounds very familiar, playing like this every time... Wait, can the spot buy orders really hold up? I feel a bit uneasy. Have the moves of long-term holders changed? That's the key. If they want to dump, we all have to reshuffle. The figure of 100,000 sounds great, but liquidation markets come quickly and go just as fast, honestly. Is it another short squeeze? Last time playing like this, I got wiped out. Don't mess around... This wave of momentum feels off. If the spot market hasn't kept up, it can only mean one thing.

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SchroedingerAirdrop

· 12h ago

The rally driven by liquidation feels unstable; it seems like a hit is coming later.

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BlockchainArchaeologist

· 12h ago

The surge pushed up by liquidation, but in the end, spot trading still has to absorb the position; otherwise, it's just a rhythm of cutting leeks.

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StableCoinKaren

· 12h ago

The rise driven by hype is ultimately empty; if spot trading can't keep up, it will fall back down. This wave of 100,000 yuan really can't hold up.

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GateUser-a606bf0c

· 12h ago

Is the surge driven by liquidations? Really? Isn't this just false prosperity... --- Can the spot market absorb it? Honestly, I'm a bit skeptical. --- Old holders' attitude is changing... feels like someone is about to dump. --- Millions of dollars in liquidations, just that simple? I thought there was some black technology involved. --- $100,000? Wait a minute, don't be fooled by the rebound caused by short squeeze. --- Cooling down the contracts is all? Will it really be that gentle, my friend? --- It's the same old historical pattern, always said like this, but what happened in the end? --- On-chain data shows such obvious signals, the big players have probably already run.

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