Bitcoin Price Rejects $94,000 Resistance: Is the Next Down Leg Underway? – BTC TA January 6, 2026

TL;DR:

A short squeeze played out on Monday to the tune of $411 million in liquidations over the last 24 hours, helping the $BTC price to hit over $94,000 before finally being rejected. Is the next down leg underway, or could this be a short pause before breaking higher?

Key Points:

Background:

Cryptocurrency liquidations occur when leveraged trading positions are automatically closed by exchanges due to insufficient margin. Large-scale liquidation events, often called liquidation cascades, can trigger dramatic price movements as positions are forcefully sold or bought back.

Why It Matters:

Liquidation events reveal the extent of leveraged positions in the market and can cause or accelerate significant price volatility. Understanding liquidation dynamics helps traders assess market risk and potential volatility triggers in cryptocurrency markets.