As the Bitcoin price remains beneath the vital resistance level of $96,500, the liquidation heatmap for Binance’s BTC/USDT pair is indicating strong signals of a possible upward short squeeze. Analyst Kevin (@Kev_Capital_TA) provided his analysis along with the liquidation heatmap, highlighting the emergence of significant liquidity pools both above and below Bitcoin’s current trading range.
“The developments we’ve observed over the past few days align perfectly with my earlier statements,” Kevin noted, referring to his previous market predictions. “We swept liquidity towards 91K yesterday. We might take more, or we might not, but I’ve never witnessed this level of liquidity on the upside for the monthly timeframe on #BTC.”
Kevin indicates that the data strongly implies that large liquidity is concentrated around the 91K area, and more importantly, near the 111K level. While the lower zone may still see occasional sweeps, it is the substantial cluster of liquidity around 111K that has led him to forecast a potential price movement towards that level.
“Currently, there is more emotion in this market than I’ve ever experienced,” he continued. “Gurus are stepping away, content creators on platforms like X and YouTube are gone, and daily interactions are filled with hostility and insults […] Yet, we remain measured and strategic.”
Kevin underscores that many traders are focusing on altcoins instead of assessing Bitcoin’s liquidity structure, total market capitalization, and USDT dominance. He argues that this narrow focus on specific altcoins is preventing traders from recognizing crucial signals.
“The problem is many people are overly fixated on the wrong aspect, which is #Altcoins charts,” he remarked. “I’m literally providing you with the playbook. Just follow it.”
Insights from the Bitcoin Liquidation Heatmap
A liquidation heatmap displays where sizable collections of leveraged positions—like futures or margin trades—are likely to be force-closed if the price hits certain levels. When numerous traders set stop-losses or hold heavily margined positions around similar price points, these areas typically emerge as “hot spots” on the heatmap. When price action approaches these clusters, it can trigger a chain reaction: forced liquidations lead to further price movement, which may then escalate into a quicker squeeze or sell-off.
Kevin believes the current Bitcoin heatmap reveals billions in potential liquidations clustered at higher levels (111K) with a significant liquidity block located lower (around 91K). The existence of this deep liquidity above has led him to anticipate a “more substantial relief rally” that may forcibly liquidate short positions en masse.
“Currently, we observe billions in liquidity to the upside at 111K, which is more than I have ever seen on the 1M time frame,” he stated, emphasizing how striking he finds this month-long accumulation. “It would be entirely reasonable and preferable if we first swiped near [the 91K area] to gather even more liquidity before commencing the real relief rally.”
In addition to liquidity data, Kevin references sentiment indicators such as the Fear & Greed Index, which currently shows a “fear” reading. From his perspective, this atmosphere indicates that the market’s emotional extremes—paired with significant positioning—could be paving the way for a swift shift in momentum, as negative sentiment often coincides with local bottoms.
“It’s evident that this relief rally wants to kick off, but it’s just not fully there yet […] I see no reason to adopt an excessively bearish outlook on this market. You all need to calm down and stop being so upset. Stop being so sensitive.”
As of this moment, BTC is trading at $96,334.
