The liquidation intensity has surged, with Bitcoin battling between 94,000 and 97,000.

According to the latest news, Bitcoin is currently in a critical liquidation risk zone. Data from Coinglass shows that if BTC falls below $94,000, the liquidation strength of long positions on mainstream CEXs will reach $263 million; conversely, if it breaks above $97,000, the liquidation strength of short positions on mainstream CEXs will reach $976 million. Currently, BTC is trading around $95,463, which means Bitcoin is not far from these two key liquidation points.

The True Meaning of Liquidation Intensity

First, it’s important to understand what liquidation intensity means. According to Coinglass, liquidation intensity is not an exact count of contracts pending liquidation or the liquidation value, but rather a measure of the importance of each liquidation cluster relative to nearby clusters. Simply put, higher “liquidation pillars” indicate that when the price reaches that level, liquidity waves will cause a stronger market reaction.

This indicator is important because it reflects not the absolute liquidation amount, but the relative pressure of liquidations and the potential chain reactions they may trigger.

Imbalance Between Bulls and Bears

The comparison data is quite interesting. On the upside, if BTC breaks above $97,000, the short liquidation strength reaches $976 million, which is a substantial figure. On the downside, if it drops below $94,000, the long liquidation strength is $263 million.

What does this imply? The liquidation pressure on shorts is far greater than on longs. In other words, short sellers have accumulated more “firepower.”

Related information indicates that this imbalance is intensifying. Data from January 15 shows that the market has shifted from neutrality to a “top-fishing and shorting” stance. The funding rates on mainstream CEXs and DEXs for BTC have turned bearish, indicating traders are actively building large short positions. The recent 12-hour liquidation data confirms this: out of $623 million in total liquidations, $553 million are from short positions, far exceeding the $69.66 million from longs.

Current Price Position

BTC is now at $95,463, in a delicate position:

• About $1,463 above the support at $94,000
• About $2,537 below the resistance at $97,000

From a technical perspective, this level is neither extremely bullish nor extremely bearish. But from a sentiment standpoint, the market is “top-fishing and shorting,” meaning traders are attempting to establish short positions at high levels.

Shift in Market Sentiment

Comparing with data from January 14, we see a clear change. At that time, if BTC dropped below $93,000, the long liquidation strength was $1.218 billion, much higher than the current $263 million. This suggests two possibilities: one, longs are closing positions to cut losses; two, some long positions have been partially liquidated.

Meanwhile, short liquidation strength increased from $548 million to $976 million, indicating shorts are adding to their positions. This aligns with the signal of funding rates turning bearish—market participants are collectively leaning toward shorting.

Key Observations

The current market exhibits a typical “short accumulation” state. There are two possible outcomes:

1. Shorts continue to bet on a decline, pushing BTC lower, which could trigger the $263 million long liquidation and cause a chain reaction.
2. Bulls counterattack, breaking above $97,000, triggering $976 million in short liquidations, causing a short squeeze.

Given the imbalance in liquidation strength, the risk above is greater. The $976 million short liquidation strength suggests that once the $97,000 level is broken, a significant rebound could occur.

Summary

Bitcoin is indeed in a “pinched” position right now. Above, the $97,000 short liquidation strength acts as resistance; below, the $94,000 long liquidation strength provides support. Market sentiment has clearly shifted toward bearishness, but the accumulation of shorts also increases the risk of upward moves.

Investors should closely monitor these two key price points. A breakout in either direction could trigger substantial liquidity waves. The current “top-fishing and shorting” strategy may seem rational, but the accumulated shorts themselves are the biggest risk—they provide ample “fuel” for any upward surge.