This week's Bitcoin futures 'liquidation hunting map' has been updated!
I really didn't expect this chart to become popular every week, the last issue's readership actually reached 120,000! Since everyone loves it, I've decided to update it daily from now on!
Let me emphasize again: my map is manually annotated, different from those generated automatically elsewhere.
Why go through all this trouble? Because that real-time liquidation data will be gone after a while, I need to manually record it to keep the key historical liquidity points for a longer view.
This week's liquidation map highlights:
The bulls have basically been wiped out: Long orders above $100,000 have been completely cleaned up, now only some remnants are left around $97,500.
Shorts have become new targets: Short orders above $110,000 are now very noticeable, becoming potential targets.
Note! This does not mean I am bullish!
What it means is: If the price can truly bottom out here and surge upwards, then those shorts above $110,000 should be ready to be 'liquidated'.
The chart makes it very clear: If the price breaks below the current trading range and confirms the start of a downward trend, the first big target for the shorts to hammer down will be around $83,000!
Core viewpoint: How to use this chart?
The key point to remember is: the futures liquidation map mainly looks at how far the price 'can go', rather than 'where it will go'! This is very important!
I see people every day saying: 'How many shorts can explode upwards, so it should rise!' or 'How many longs can explode downwards, so it should fall!'. This kind of logic might work in a pure futures market, but right now, it’s just random guessing!
Why? Recently, the market clearly has the spot market being led by various sudden news, and futures liquidations often lag behind.
So:
Want to predict direction with the liquidation map? It's as difficult as climbing to the sky!
Its most reliable use is: when the price starts moving in a certain direction, use it to judge how far this wave can go.
My advice: Look at the direction, honestly analyze the price trend itself. If the trend aligns with the liquidation targets, the chances are greater; if the two conflict, listen to the market! Don't go against the money.
Are you stuck? When to buy the dip? Still the same saying, if you're confused and don't know what to do, click on the avatar and comment. I need fans, you need reference.
Intraday focus: BTC ETH FUN SOL
