Bitcoin Nears $100K: A "Violent Breakout" Looms as Shorts Face Risk of Liquidation

Bitcoin's price is rapidly approaching the coveted $100,000 mark, with sell-walls vanishing and short positions at risk of getting "squeezed" as the price momentum continues to build. On November 22, Bitcoin came within 1% of hitting $100,000, with bulls aggressively eating up the last remaining sell orders beneath the six-figure threshold.

Bitcoin Devours the Last Supply Before $100K

Recent data from Cointelegraph Markets Pro and TradingView confirmed Bitcoin's all-time high surge, nearing $99,500 on Bitstamp before briefly dipping below $96,000. However, the dip was short-lived, as BTC/USD quickly rebounded, setting the stage for what could be an imminent breakout into the $100,000 range.

Trader Skew offered insight into the price action, predicting that a "violent breakout" may be on the horizon once Bitcoin clears the remaining ask liquidity near the key $100,000 mark. Skew’s analysis highlighted that limit bids were steadily rising, signaling strong demand in the market.

“A lot of aggregate spot supply around $100K. Price currently is chewing away at this supply, before this has preceded a pretty violent breakout,” Skew noted in a post on X (formerly Twitter). The trader also pointed out the presence of large asks clustered in the $99,000 range on the Binance order book, further indicating that the market is preparing for a potential surge once the $100K barrier is breached.

Short Sellers at Risk as Liquidations Surge

Despite the strong upward momentum, some traders have been tempted to short Bitcoin at its current levels, potentially setting themselves up for heavy losses. Keith Alan, co-founder of Material Indicators, observed that shorts are being "lured in," a situation that could trigger significant liquidations as Bitcoin’s price climbs higher.

Data from CoinGlass confirmed that short liquidations were already reaching significant levels, with nearly $115 million worth of short positions being liquidated the previous day. This suggests that short sellers are getting squeezed as Bitcoin’s price approaches new highs, and any further upside could result in even more substantial liquidations.

Binance Trading Volume Shows Decline Amid Price Discovery

Despite the growing momentum in the Bitcoin market, Binance—one of the largest crypto exchanges—has seen a decline in its overall trading volume. After a surge in spot trading volume to $60 billion on November 12, coinciding with the broader crypto market surpassing its previous all-time highs, Binance’s trading activity has since decreased by half.

In a Quicktake blog post, on-chain analytics platform CryptoQuant noted the trend, pointing out that while the overall crypto market cap enters price discovery mode, Binance's trading volume has not kept pace. This drop-off in volume could suggest that traders are becoming more cautious, despite the bullish price action.

The Road to $100K and Beyond

As Bitcoin edges closer to the $100,000 mark, the market is on high alert. The combination of diminishing sell-walls, growing spot buy demand, and short liquidations suggests that the cryptocurrency could be gearing up for a dramatic move. Traders are watching closely for any signs of a "violent breakout" once Bitcoin clears the last remaining resistance near $100K.

For now, Bitcoin's journey to six figures remains in full swing, and with a rising number of market participants feeling the pressure to either buy or cover their shorts, the next few days could prove pivotal in determining whether $100,000 will be reached and what happens once it’s broken. The question now is: will Bitcoin simply touch $100K, or will it burst through it in a parabolic rally? Only time will tell.