Analysis of Bitcoin Short-Term Liquidation Landscape and Trading Strategy Suggestions

Based on the current liquidation map data, Bitcoin's price trend may face the following situations:

Impact of Upper Liquidation Stacking:

Price Increase Momentum: Due to the large number of short liquidations above, once the price reaches these areas, it may trigger short covering, pushing the price further up. Potential Resistance Levels: The liquidation stacking between $110,000 and $113,000 may form strong resistance, and the price in this area may encounter selling pressure, leading to a short-term pullback.

Impact of Limited Lower Liquidation:

Risk of Price Decline: Due to the limited long liquidations below, the price lacks support when it declines, which may lead to significant losses. Increased Market Volatility: The lack of support below may make the market more sensitive to negative news or other market trends, increasing price volatility.

Market Trend Forecast:

Short-Term Upside Potential: If the price breaks through the upper liquidation stacking area, it may trigger more short covering, pushing the price up further, forming a positive feedback loop. Mid-Term Adjustment Risk: The price may experience a pullback after breaking through the high, testing the support levels below, and if there is insufficient support, it may trigger further declines.

Trading Strategy Suggestions:

Long Strategy: Consider going long as the price approaches $110,000, taking advantage of the upward momentum from short liquidations. However, set reasonable stop-loss levels to prevent a pullback after the price breaks through. Short Strategy: If the price encounters strong resistance between $110,000 and $113,000, consider going short, taking advantage of the selling pressure to push the price down. Diversification and Risk Control: As the liquidation map may change rapidly, it is recommended to diversify investments to avoid concentrating on a single strategy. At the same time, maintain sufficient cash flow to cope with sudden market situations.

Monitoring and Adjustment:

Real-Time Monitoring of Liquidation Map: The liquidation map updates quickly with market changes, and traders need to adjust strategies in a timely manner and make decisions based on the latest data. Pay Attention to Market Sentiment and News: Macroeconomic data, regulatory news, and other factors may affect market sentiment, and close attention should be paid to adjust trading strategies accordingly.