Bitcoin (BTC) appears to be knocking on a monster’s short-squeezing door.
According to Bitcoin Heat Map, if assets surge beyond $125,000, major exchanges such as Binance, Bybit, and OKX could liquidate a $17 billion short position. Coinglass Data obtained by Finbold on August 29th.
In the chart below, the rising green curve on the right shortens the short liquidation leverage, steadily increasing, suggesting mounting pressure.
It moves further upwards from the risk of around $113,000, causing a cascade of forced liquidation, trapping the late seller and outweighing prices.
Will Bitcoin rebound?
The world’s biggest cryptocurrency has slipped today, trading at $110,673 at the time of writing, and traders are hoping for more downsides after not receiving critical support.
Analyst Michael Van de Poppe said on Thursday, August 28th that liquidity levels in the range of $110,000 to $108,000 could then be tested if sales pressure continues. The next day, Bitcoin actually fell to the level at around $110,000.
However, analysts further hinted that the rebound would follow the correction.
“If Bitcoin can’t exceed $112K, we’re probably facing a very ugly correction across the board. It’s probably the last correction, and it’s only happening for the next period.”
#bitcoin can’t hold $112K and continues to fall.
I think we’ll see some low numbers. It will bring $ETH back to neutral and provide a great opportunity for the market. pic.twitter.com/iaabrm9j4d
– Michael Van de Poppe (@cryptomichnl) August 29, 2025
It’s still difficult to tell what the near future holds, but the next few days are becoming more important for BTC as investors await the release of their Personal Consumption Expense (PCE) index.
Data could have a major impact on Bitcoin in the next few weeks, especially due to concerns that President Donald Trump might encourage central banks to manage US debt more proactively.
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