Bitcoin Nears $108K Peak as Short Positions Face Liquidation Risk

• NVT Golden Cross remains below the risk zone but continues rising steadily.
• Over $1.1B in short positions face liquidation near the $108,000 mark.

Bitcoin is approaching its record high, buoyed by renewed optimism in global financial markets. On Tuesday, the cryptocurrency surged to $107,000, its strongest position since January. 

At the time of writing, the Bitcoin price has reached approximately $107,500. This level is just under 2% below its peak of $108,786, recorded in January during President Trump’s inauguration. Analysts attribute the recent upward momentum to positive macroeconomic developments.

After dropping below $75,000 in early April due to heightened trade tensions, Bitcoin rebounded steadily as the U.S. government relaxed tariffs and signaled a willingness to pursue trade deals. 

The rebound reflects a shift in investor sentiment. Market participants view the easing geopolitical climate as a supportive factor for high-risk assets, including cryptocurrencies.

NVT Golden Cross Signals Cautious Optimism

CryptoQuant data shows the NVT Golden Cross rising but remaining below the 2.2 level. This metric compares Bitcoin’s market value to transaction volume and evaluates whether prices are justified by network activity.

Analyst Burak Kesmeci noted the current reading does not indicate overheating, though it continues to trend upward. He emphasized that the metric should be monitored closely while the market remains stable. Historically, values above 2.2 have preceded price corrections.

As of mid-May, the rising NVT level aligns with Bitcoin’s upward price trend, but it still sits below the critical risk zone. This suggests the rally may still be backed by organic transaction growth rather than speculative excess.

Over $1.1B in Short Positions at Risk of Liquidation

According to Coinglass, data shows that $1.12 billion in short positions could be liquidated if Bitcoin crosses the $108,000 mark. These are trades that bet on a price decline. With Bitcoin nearing this threshold, traders holding shorts face mounting pressure.

The Bitcoin Exchange Liquidation Map indicates significant exposures on platforms like Binance ($31.49 million), OKX ($37.25 million), and Bybit ($48.70 million). A surge past $108,000 could trigger cascading liquidations, increasing the price.

Market analysts say forced closures of shorts often amplify price movements. The concentrated risk on leveraged trades increases the chance of sharp upward spikes, especially if Bitcoin breaks above its all-time high.