Bitcoin shows strong buy orders at $100K, while a liquidity wall between $109K–$110.9K is now drawing market attention.
A 10% drop in open interest and neutral funding indicate a market reset, flushing overleveraged longs from the system.
Price consolidation between major orders suggests Bitcoin may enter an expansion phase, with bullish momentum building steadily toward the $110K mark.
Bitcoin’s heatmap is flashing signals of a potential breakout. Liquidity is piling up near the $109K to $110.9K range, suggesting a magnetic pull.
Liquidity Zone Near $110K Draws Market Attention
According to trader Merlijn The Trader, a large liquidity stack is positioned between $109K and $110.9K. This cluster is not acting as resistance, but rather a magnet for price movement. The presence of high liquidity at this level can attract price action due to aggressive positioning by traders and algorithmic systems.
https://twitter.com/MerlijnTrader/status/1931712460274462816
Once this liquidity area is tapped, Merlijn suggests a possible short squeeze. This could cause increased volatility, as traders with short positions rush to cover. A breakout above this level could trigger momentum-driven buying, pushing prices even higher.
The $109K zone has not yet been tested. However, the current price action hovers between strong buy interest at $100K and this high-liquidity ceiling. The market remains undecided, but the structure suggests an accumulation phase.
Market Reset Clears Leverage Excess
On June 6, the Bitcoin market experienced a sharp decline in open interest. Merlijn notes a 10% drop in open interest, describing it as a “leverage cleanse.” Funding rates turned neutral, and overleveraged long positions were flushed out. This move removed weaker participants, creating a more stable foundation for upward movement.
Source: Merlijn The Trader
No structural weakness was observed in Bitcoin’s price during the shakeout. The event resembled a necessary reset rather than a downturn. Market conditions now appear more favorable for a clean push upward, especially with lower risk of forced liquidations on the long side.
With leverage reduced and funding stabilized, Bitcoin could be primed for further gains as fresh capital enters.
Accumulation Phase Sets Up Expansion
Bitcoin’s current position between aggressive buy orders at $100K and the sell wall near $110K represents a consolidation range. Merlijn describes this structure as a textbook case of “Range → Accumulation → Expansion.” This phase often precedes a directional move when one side of the range breaks.
https://twitter.com/MerlijnTrader/status/1931712467417129215
Momentum is beginning to build, and with fewer leveraged positions, the market may be preparing for a directional expansion. As the liquidity at $109K to $110.9K acts as a target, the path upward remains unobstructed if buying pressure sustains.
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