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Bitcoin Updates: BTC Surge Threatens Liquidation Cascade with $1.1B in Short Positions Echoing FTX Turmoil

Bitcoin Updates: BTC Surge Threatens Liquidation Cascade with $1.1B in Short Positions Echoing FTX Turmoil

Bitget-RWA2025/11/17 09:00
By:Bitget-RWA

- Bitcoin's price volatility risks triggering $1.1B in liquidations, with a $123M Hyperliquid short position near $96,100 liquidation threshold. - Market stress mirrors 2022 FTX collapse as 74.7% of recent liquidations involve leveraged shorts, signaling sustained BTC upward pressure. - Key technical indicators show extreme fear levels and oversold RSI, with critical support at $93,500-$89,000 threatening bullish recovery scenarios. - Institutional activity and cascading liquidations could push BTC toward

The crypto market is experiencing heightened tension as Bitcoin's volatile price swings threaten to set off significant liquidations on derivatives exchanges. A major short position worth $123 million on Hyperliquid, controlled by a prominent trader associated with Roobet and Stake.com, is at risk of being liquidated if

climbs to $96,100. This position, established at an average of $95,270 with 40x leverage, has shifted from being profitable to incurring losses as the price dropped below the entry, leaving just a margin before a call is triggered. This situation adds to the mounting pressure in the market, with more than $1.1 billion in liquidations over the last day alone, including $968 million from long positions, as traders contend with volatility .

Current market conditions echo the bleakest moments of the crypto winter, with sentiment dropping to lows not seen since the end of 2022.

Bitcoin Updates: BTC Surge Threatens Liquidation Cascade with $1.1B in Short Positions Echoing FTX Turmoil image 0
Bitcoin's Relative Strength Index (RSI) has fallen into oversold levels, a state last witnessed during the FTX debacle, while the Fear and Greed Index recently hit an extreme fear score of 10 . Experts caution that the market's vulnerability is being intensified by excessive leverage, with short positions making up 74.7% of the $343.89 million in recent liquidations, .

The threatened Hyperliquid short is part of a broader trend of speculative trades turning sour. The same trader also holds short positions in

and that are close to being liquidated, increasing the trader's exposure. Additionally, another $131 million short on the platform, managed by a large investor using 20x leverage, could be wiped out if BTC hits $111,770. This trader, who has realized $33.12 million in profits since September, now has an unrealized gain of $6.36 million at stake .

Market participants are paying close attention to technical signals to gauge Bitcoin’s next move. Earlier this week, Bitcoin briefly dropped to $93,000, erasing all gains made in 2025 and

, including a record-setting $44.29 million BTC-USDT position on HTX. Analyst KillaXBT has identified key support at $93,500 and between $89,000–$91,000, warning that a fall below $85,000 would undermine any bullish recovery hopes.

The risk of liquidation is not limited to individual traders. Institutional involvement and forced buying from short liquidations could create a feedback loop, pushing BTC toward important price levels. With 15 buy signals and only one sell signal in recent technical analysis, and an RSI reading of 66 suggesting a neutral to bullish outlook, the market could be poised for a rally

. However, such a surge could set off a chain reaction of liquidations, further unsettling the already delicate market.

As the crypto sector prepares for more turbulence, the lessons from the FTX collapse remain fresh. This ongoing turmoil highlights the dangers of leveraged trading in a market susceptible to sharp reversals, with analysts advising caution as

moves through uncertain territory.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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