Bitcoin Price Analysis Based on Liquidation Map
Through an in-depth analysis of the liquidation map, we can clearly see the close relationship between Bitcoin price fluctuations and long/short liquidations.
If the Bitcoin price retraces to around 84414, it will trigger the forced liquidation of over 1.871 billion long positions in mainstream centralized exchanges (CEX). This phenomenon indicates that a large number of long positions are concentrated near this price level, and once the price touches this area and shows a downward trend, long holders may be forcibly liquidated due to insufficient margin or other reasons, further intensifying the downward pressure on the price, creating a chain reaction that drives the price further down.
In contrast, when the Bitcoin price breaks upward to around 104592, there will be 5.622 billion in short positions facing liquidation in the mainstream CEX. This means that there are numerous short positions above this price level, and the breakout will put short holders at a disadvantage, forcing them to close their positions to cover losses, while the large-scale liquidation of shorts will create strong buying power in the market, pushing the price further up and potentially triggering a rapid rally.
Further analysis reveals that the short liquidation points for Bitcoin (BTC) in mainstream CEX are 95928, 98816, 101704, and 104592. As the price gradually rises to these points, the risk of liquidation faced by shorts gradually increases, while the market's short force will be gradually weakened, and the long force may take the opportunity to gain momentum.
The long liquidation points are 84378, 87265, 90153, and 93041. During the price decline, once these points are touched, the concentrated liquidation of longs will have a tremendous downward pull on the price, severely impacting the market's bullish atmosphere.
