Bitcoin’s upside liquidity clusters at $3.5bn… “Potential $70,000 short squeeze”

Bitcoin (BTC) has a concentration of short positions worth $3.5 billion around the $70,000 level, raising the possibility of a near-term test of upside liquidity.

On the 23rd (local time), Cointelegraph reported that “around $240 million in long positions were liquidated during the recent decline in Bitcoin’s price,” adding that “based on the liquidity distribution, roughly $1 billion in long liquidations is stacked around $63,000, while more than $3.5 billion in short liquidations is queued near $70,000. The concentration is heavier on the upside.”

According to the outlet, technical signals point to volatility compression. Bollinger Bands have entered a contraction phase, and futures open interest has stalled near recent lows, suggesting limited inflows of new aggressive positioning. At the same time, the 4-hour funding rate has turned negative, creating a structure in which short positions bear the cost. This is interpreted as an environment in which a short squeeze could occur if price holds key support.

The near-term downside pivot is around $63,000. That zone is a demand area where large buying previously emerged; if it holds, the path opens for a recovery back into the mid-range and a retest of resistance at $70,000. Conversely, failure to defend support would likely force a renewed confirmation of the lower bound of the range, the report said.