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Key Takeaways
Bitcoin’s liquidation heatmap reveals heavy overleveraged longs at $105k. Does BTC have the bid to soak up it, or is a deeper, lengthy squeeze to $100k coming?
On the each day chart, Bitcoin [BTC] is holding up.
For the reason that $124k all-time excessive on the 14th of August, BTC has printed three decrease lows. Every time, BTC spent a couple of days chopping tight earlier than snapping the ground and hitting late-long stops.
Nevertheless, the third low at $107.5k is trying completely different. BTC’s been grinding beneath $110k for 4 days straight, with sub-1% each day strikes, a lot tighter than the standard 1.5-3% swings we noticed on prior breakout makes an attempt.
Supply: TradingView (BTC/USDT)
That means bulls are “strategically” repositioning into BTC.
Reinforcing this shift, Bitcoin dominance (BTC.D) is bouncing off 57%, up 1.52%, suggesting capital could be rotating again and treating $107k as a reduced “dip” or an area backside.
However heads up, there’s a warning. The final three failed rebounds noticed Bitcoin Open Curiosity (OI) spike above $83 billion, displaying aggressive leverage chasing directional bets. Now, the identical sample appears to be forming once more.
Overleveraged longs take a look at Bitcoin’s energy
Bitcoin’s indecision is displaying on-chain.
For starters, sensible cash’s moving out, establishments are sitting tight, and STH NUPL continues to be purple. On the identical time, over 60% of BTC/USDT perpetual contracts on Binance are skewed lengthy.
The truth is, since BTC cracked the primary decrease low beneath $110k in mid-August, overexposed longs have been stacking, highlighting the chance as BTC’s OI retains spiking previous $83 billion. The end result? Repeated lengthy sweeps.
Supply: CoinGlass
Merely put, Bitcoin’s caught in a rinse-and-repeat vary.
To interrupt out, bids want to soak up the overexposed longs under $110k earlier than taking up the large shorts above. Technically, BTC is holding, however the lack of recent accumulation retains it uncovered.
Due to this fact, a fourth decrease low isn’t off the desk. The truth is, one other lengthy squeeze might be brewing beneath the floor. If risk-off stays in play, bears may drag Bitcoin again towards $100k.