Millions in short positions now cluster above $106k after leverage flush

While the above chart primarily captures the perpetual futures market, spot liquidity remains closely aligned. Visible buy walls are stacked every $1,000 between $104,000 and $100,000, with the largest resistance cluster between $106,800 and $108,000.

This structure points to constrained upward momentum in the near term, though the absence of deeper downside continuation following the flush implies a meaningful reset in market positioning.

Open-interest-weighted funding rates across major exchanges have flattened to approximately 0.0038%, placing perpetual contracts effectively at parity with spot.

This return to neutral levels follows a notable decline in total open interest, which has dropped 15% week-over-week to approximately $71 billion. The combination suggests that excessive leverage has been flushed from the system, and traders are refraining from rebuilding positions aggressively.

Liquidation levels

CoinGlasss liquidation heatmap reinforces this interpretation. The yellow bands representing long liquidations were nearly exhausted at the $100,000 level, while new blue bands, marking short exposure, are forming above $106,000. The shift in liquidation density marks a rebalancing, indicating that directional risk has tilted toward a potential short squeeze on any breakout above recent highs.

Order book liquidity also reflects buyer preference. The visible bid depth outpaces offer depth by more than two to one (5.41k BTC vs. 2.31k BTC), with net liquidity trending positive over the last ten sessions. This growing buy-side cushion aligns with the resurgence in price and indicates accumulating spot demand across levels that were tested during the June 5 dip.

Volatility has also compressed. Skew on Deribit options returned to neutral, and short-term implied volatility cooled following the liquidation event. Dealers appear to be selling wings, reducing premiums on tail risk, which often precedes a period of price consolidation or controlled upside movement.

The broader structure presents three actionable levels. The $108,000 to $110,000 zone remains the most densely packed with passive offers and clustered short liquidations, making it the key threshold for triggering stop-driven upward extension.

Should BTC fail a sustained breach of $106,775 and instead retreat, the $102,000 to $103,000 range forms the first major support where substantial liquidity still remains. A breakdown below $100,000 would risk triggering another round of long-side liquidations.

The technical reset appears complete, with large players active on the buy side and no corresponding increase in leverage or funding pressure.

Market depth and liquidation distribution suggest the next directional leg may be influenced less by positioning and more by fresh catalyst or macro flow. For now, price remains coiled just below resistance, with futures and spot tightly aligned.

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