Bitcoin is approaching a key technical zone that could trigger a massive derivatives flush. Liquidation data shows that more than $13 billion in short positionsBitcoin is approaching a key technical zone that could trigger a massive derivatives flush. Liquidation data shows that more than $13 billion in short positions

Bitcoin Faces $13B Short Squeeze Risk as Accumulators Step In

2026/02/22 15:21
2 min read

Bitcoin is approaching a key technical zone that could trigger a massive derivatives flush.

Liquidation data shows that more than $13 billion in short positions would be wiped out if BTC reclaims the $90,000 level. The exchange liquidation map highlights a dense cluster of short leverage stacked above current price levels, creating a potential fuel source for a squeeze.

$90K Level Holds Major Leverage Pressure

The liquidation heatmap reveals cumulative short liquidation leverage building aggressively between the high-$80,000s and $90,000.

If price pushes into that zone, forced buybacks from overleveraged shorts could accelerate upside momentum quickly. These cascades typically unfold fast, as liquidations trigger market orders that push price higher, which then liquidates even more shorts.

In contrast, downside long liquidation pressure appears significantly thinner compared to the stacked short liquidity overhead.

Accumulator Demand Spikes Sharply

At the same time, on-chain data shows a sharp increase in demand from so-called accumulator addresses over the past seven days.

The liquidity inventory chart indicates:

  • Exchange and GBTC sell-side liquidity has been declining.
  • Accumulator addresses have increased their 30-day balance change.
  • The recent spike in demand is one of the strongest moves seen in months.

This combination suggests coins are moving off exchanges while longer-term holders increase exposure.

RWA Issuers Focus on Fundraising Over Secondary Market Liquidity

Liquidity Tightening Meets Leverage Imbalance

When exchange supply declines and demand from accumulators rises, available spot liquidity tightens. If that dynamic coincides with heavy short positioning in derivatives markets, conditions can become asymmetric.

In such scenarios, price does not need extraordinary buying volume to move higher. A modest push can trigger liquidation cascades that amplify the move.

Squeeze Setup or False Break?

The key level to watch remains $90,000.

A clean reclaim could force over $13 billion in short liquidations, potentially creating rapid upside expansion. However, failure to break through may keep price range-bound while leverage resets further.

For now, the structure shows a clear tension point: rising long-term accumulation beneath the surface, and a heavily stacked short market waiting above.

The post Bitcoin Faces $13B Short Squeeze Risk as Accumulators Step In appeared first on ETHNews.

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