Bitcoin Heatmap!

A brief explanation of the liquidity chart of bitcoin for those who are unclear.

- The chart shows a large liquidity zone for btc in the price range from 95k to 105k. It can be understood that there are many orders, and if the price touches or exceeds this zone, these orders will be liquidated.

So what does it mean?

+ Case 1: If btc breaks 105k, short orders will be liquidated immediately. We understand that when shorting, you will borrow btc from the exchange and sell it to get usd. So when the order is liquidated, the exchange will sell your margin usd to buy back btc, at this point the demand for buying btc increases sharply, causing the price of btc to continue to rise.

+ Case 2: If btc drops below 95k, it is similar, but this time long orders will be liquidated, causing the price to drop significantly.

* In summary, at the price range of 95-105k, there is strong liquidity. If the price breaks 105k, it will cause btc to rise strongly to higher levels, and if it drops below 95k, there will be nothing left. Those who play stocks are probably familiar with the case of Tesla and Gamestop a few years ago, as many short-selling funds were wiped out. You know what to do!! If it rises, it will rise strongly, and if it drops, it will also drop strongly.

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