This chart shows a liquidation map for Bitcoin ($BTC ) paired with USDT on Binance.
It provides insights into the cumulative liquidation levels for both long and short positions, segregated by leverage levels (10x, 25x, 50x, 100x).
Here’s a breakdown to help plan your next move:
Key Observations:
1. Current Price: The price of $BTC is at $93,917, marked by the dotted red line.
2. Cumulative Short Liquidations (Green Area): Indicates short positions that would be liquidated if the price rises.
The green curve increases sharply after $93,917, indicating a strong short liquidation zone.
3. Cumulative Long Liquidations (Red Area): Shows long positions that would be liquidated if the price drops.
The red curve decreases before $93,917, showing potential risk for longs.
4. Leverage Breakdown:
Yellow and Orange Bars: Higher concentrations of high-leverage trades (50x and 100x) clustered around critical price levels.
Blue Bars: Represent relatively safer zones with lower leverage (10x and 25x).
Strategic Analysis:
1. Buy Zone (Entry Point):
A good buy zone lies just below $93,500, where lower liquidation risks are evident.
High liquidity in this area means potential for quick upward movements as shorts get liquidated.
2. Target:
Short-term: Aim for $95,000, a level where significant short liquidations may trigger rapid upward price movement.
Medium-term: Look towards $97,000 as a more extended target based on the liquidation cluster.
3. Stop Loss:
Place your stop loss below $92,500, as a break below this level could trigger downward momentum with long liquidations becoming dominant.
Risk-Reward Profile:
Risk: Limited to around $1,000 per BTC (entry to stop loss).
Reward: Potential gain of $1,500–$3,500 per BTC (entry to target).
Additional Tips:
Monitor real-time liquidation maps for sudden changes in leverage positioning.
Use low leverage (10x or below) for safer trading, especially in volatile zones like this.
Always follow risk management and avoid emotional decisions.