Bitcoin Liquidity Signals A Brutal Squeeze To $111,000: Analyst
While Bitcoin prices hover below crucial resistance below $96,500, the liquidation heatmap of the Binance BTC/USDT pair is sending a strong signal upward. Analyst Kevin (@kev_capital_ta) shared His insights, together with the accompanying liquidation heat map, point to the large number of liquidity pools formed over the current trading scope of Bitcoin.
“What we’ve seen in the past few days is a perfect arrangement with what I’ve been saying,” Kevin explained. “Sweep liquidity to the 91k we did yesterday. Maybe we’ll spend more time , but overall, I have never seen so much liquidity in the #BTC monthly timeframe.”
According to Kevin, the data strongly suggests that traders’ positions will be forced to be liquidated – now stacked in the 91k area and, more importantly, near the 111k mark. While lower areas may occasionally sweep, the large amount of liquidity is around 111K, prompting him to predict potential migration to that level.
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He continued, “I’ve seen more emotions in this market.” “Masters are quitting X, YouTuber is no longer streaming or producing content, comments are abominable, insulting every day (…), and at the same time, We are doing measurements and calculations here.”
Kevin stressed that many market participants are focused on Altcoins Rather than monitoring Bitcoin’s liquidity structure, overall market capitalization and USDT’s dominance. He believes that traders’ narrow focus on individual altcoins, rather than these broader indicators, leads them to miss out on key signals.
“The problem is that everyone is very focused on the wrong thing, that’s the #altcoins chart,” he said. “I’m actually giving you the script. Follow it.”
What does Bitcoin clearing heat map tell us
A clearing heat map shows that if the price reaches certain levels, a large number of leveraged positions, such as futures or margin trading, are most likely to be deducted. These areas often accumulate as “hot spots” on the heat map when many traders place parking or keeping serious trades near similar price points. If the price action is close to these clusters, it can trigger a ripple effect: Forced liquidation drives further price movements, which can then be cascading into faster squeezes or sell-offs.
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Kevin believes that Bitcoin’s hot map currently shows that billions of dollars of potential liquidation are concentrated at higher levels (111k) and large amounts of liquidity blocks below 91k (about 91k). This deep liquidity’s presence in rising leads Kevin to foresee a “bigger” Relief rally”This could force a shortage.
“Now, as we see (…), we have billions of dollars in liquidity at 111k. He said, more than I have seen in the 1 million range. “If we brush first (91k) Area) to increase mobility to start a real relief gathering, that would be totally possible and preferred. ”
In addition to liquidity data, Kevin also cites emotional metrics, e.g. Fear and Greed Indexcurrently reflects “fear” reading. From his point of view, this environment suggests that the emotional extremes of the market – coupled with heavy positioning, may lay the foundation for rapid momentum changes, as negative emotions are often accompanied by the local bottom.
“You can say this relief rally wants to keep going, but that’s not exactly there (…) I have no reason to be too bearish in this market. You need to calm down and stop being so angry. Don’t be so soft anymore.”
At press time, BTC was trading at $96,334.
Featured Images created with dall.e, Charts for TradingView.com
