January 28, 2025 at 01:13PM
Bitcoin (BTC) Liquidation Map Analysis & Potential Next Move
Key Observations from the Chart
Current BTC Price: 102,566 USDT
Price is currently sitting below a large cluster of short liquidations around 103,000 USDT.
This means if price moves above 103,000, a short squeeze could trigger a rapid push higher.
Major Liquidation Clusters
Short Liquidations (Bullish Setup) Above 103,000 USDT:
Large 50x and 100x leveraged short liquidations are stacked from 103,000 to 104,500.
If price breaks above 103,000, we could see a rapid spike toward 104,500 as trapped shorts are forced to buy back their positions.
Long Liquidations (Bearish Setup) Below 101,000 USDT:
Long liquidations are accumulating below 101,000 USDT.
If price drops below 101,000, a liquidation cascade could push BTC lower toward 98,000–99,000 USDT.
Cumulative Liquidation Trends
The red line (long liquidation leverage) is declining, meaning fewer long positions are being liquidated now.
The green line (short liquidation leverage) is rising, suggesting shorts are accumulating and could be squeezed.
Potential BTC Price Scenarios
Scenario 1: Bullish Short Squeeze Toward 104,500 USDT
🔹 Trigger: BTC Breaks Above 103,000
If BTC pushes above 103,000, we will likely see a short squeeze, sending price up quickly toward 104,500.
The 100x leverage traders are trapped in this range, meaning liquidations could trigger a parabolic move.
Trade Setup:✅ Long Entry: Above 103,000 USDT🎯 Target: 104,500 USDT (possible extension to 105,500 USDT)🛑 Stop-Loss: Below 102,000 USDT
🔹 Confirmation Signals:
Increasing buy volume on the breakout
Delta shifting strongly positive (indicating aggressive buying)
Green liquidation line dropping as shorts get wiped out
Scenario 2: Bearish Long Liquidation Cascade Toward 98,000 USDT
🔻 Trigger: BTC Breaks Below 101,000
If BTC fails to hold 101,000, liquidation pressure could build, pushing price toward 98,500–99,000 USDT.
The red line (long liquidation leverage) would increase, signaling longs getting trapped and liquidated.
Trade Setup:✅ Short Entry: Below 101,000 USDT🎯 Target: 99,000 USDT (possible extension to 98,000 USDT)🛑 Stop-Loss: Above 102,500 USDT
🔻 Confirmation Signals:
Increasing sell volume on breakdown
Delta shifting strongly negative (indicating aggressive selling)
Red liquidation line rising as long traders are liquidated
Which Move is More Likely?
✔ Short Squeeze Toward 104,500 USDT is More Likely
Shorts are stacking above the current price → Market makers may push price above 103,000 to trigger liquidations.
No major long liquidation clusters until 101,000, meaning downside pressure is weaker unless a new sell-off starts.
Probability Estimate:
🚀 Short Squeeze Above 103,000 → 104,500 (70% Chance)
📉 Break Below 101,000 → 98,000 (30% Chance)
Final Trading Plan for BTC
📌 BULLISH TRADE (HIGHER PROBABILITY)
Long above 103,000, targeting 104,500–105,500
Stop-loss at 102,000
📌 BEARISH TRADE (LOWER PROBABILITY)
Short below 101,000, targeting 99,000–98,000
Stop-loss at 102,500
🔥 Conclusion: BTC is in a highly leveraged zone, and a break above 103,000 USDT is more likely to trigger a short squeeze rally toward 104,500–105,500. However, if BTC fails to hold 101,000, we could see a liquidation cascade toward 99,000–98,000.
Trade Bitcoin at your own risk only and visit ForexLive.com for additional views. 📊
This article was written by Itai Levitan at www.forexlive.com.