Bitcoin is currently stuck in a delicate position—on-chain liquidation data reveals two "explosive points."

**First, look at the upper resistance: the $94,700 threshold**

According to the liquidation heat map, once BTC surpasses 94.7K, approximately $1.967 billion worth of short positions will be forcibly liquidated on major exchanges.

What does this number imply? A large number of bears have set their defenses near this price level. As the price breaks through, chain reactions of liquidations will form a "buying relay"—shorts are forced to close, converting into buy orders, pushing the price further upward. This kind of short squeeze often comes with increased slippage and sudden jumps.

**Next, consider the support below: $85,958 is the bulls’ lifeline**

If BTC turns downward and falls below 85.9K, it will trigger $1.149 billion in long position liquidations.

This is the most densely defended area for the current bulls. Once breached, stampede-style liquidations could come unexpectedly fierce—longs being wiped out and turning into selling pressure, greatly increasing the chances of a waterfall decline.

**The game logic behind the data**

It’s worth noting that the liquidation strength above ($19.6B) is significantly larger than below ($11.5B). This indicates that the current market positioning is more defensive, with bears betting heavily.

But this also means—there’s more fuel for a short squeeze. The more bearish the market, the stronger the explosive power during a reverse breakout.

Additionally, the liquidation chart shows not the absolute quantity, but how intense the reaction will be once the price hits that level. Higher bars indicate more fierce battles between bulls and bears at that price, amplifying volatility.

**Current situation: waiting for a direction**

BTC is now between two liquidation zones, with a gap of about $10,000. This structure is typical ahead of the FOMC meeting—markets are waiting for Powell’s signal.

What should traders focus on?

• The **psychological level of $90,000** is the most frequently tested area for bulls and bears, with repeated tug-of-war
• A **break above $94,700** signals short squeeze activation, potentially triggering accelerated upward movement
• Falling **below $85,958** indicates a bulls’ defeat, with liquidation-driven sell-off likely to be more rapid than expected

In summary: BTC is currently in a "sandwich" state—pushing above could trigger nearly $2 billion in short liquidations; falling below $85,958 could cause over $1.15 billion in long liquidations. Extreme volatility may arrive at any time, don’t get left behind.