Massive $18.5B in Bitcoin Short Liquidations Expected at $130K

New York, NY — A significant $18.5 billion in short positions may face liquidation if Bitcoin hits $130,000, according to a tweet by cryptocurrency analyst Crypto Rover on August 9, 2025.

The potential for this liquidation surge highlights a critical moment in the BTC trading environment. Short liquidations occur when the price of an asset rises, forcing traders who bet against it to cover their positions at a loss. This can create a chain reaction, known as a ‘short squeeze’, where rapid price increases lead to more liquidations.

Bitcoin’s historical price shows an all-time high of around $69,000 in November 2021. A move to $130,000 would signal a nearly 100% increase. Traders are particularly focused on on-chain metrics such as funding rates on platforms like Binance and Bybit, which can indicate changes in trader sentiment and potential squeezes.

Current technical analysis reveals that Bitcoin’s support ranges from $90,000 to $95,000. If Bitcoin breaks out above $110,000, analysts predict this could trigger a liquidation cascade, resulting in trading volumes potentially exceeding 500,000 BTC in a single day.

In addition, derivative traders are advised to watch for buying opportunities while setting stop-losses below $85,000 to protect against downside risks. Analysts also suggest utilizing call spreads targeting the $120,000-$140,000 price range.

The interconnectedness of the cryptocurrency market with traditional finance means that bullish trends in U.S. stock indices might also impact Bitcoin’s attractiveness to institutional investors, spurred by products like those from BlackRock.

However, risks such as geopolitical tensions or sudden regulatory news remain pertinent, with potential for long liquidations resulting from market shifts.

Market-wide effects may extend to altcoins as well, with Ethereum potentially rising toward $5,000 and various AI-related tokens increasing by 50-100% following a Bitcoin surge. Increased transfer activity, as highlighted by on-chain data, often signals whale accumulation patterns before significant price movements.

Traders and investors are advised to closely monitor volatility indicators and sentiment metrics, such as the Fear & Greed Index, currently registering around ‘greed’ levels of 70, which could suggest an impending market correction.

If Bitcoin reaches $130,000, projections indicate it could redefine the cryptocurrency’s market cap, potentially advancing it toward $2.5 trillion and presenting substantial opportunities for traders.