As a personal trader who has been through the crypto space, today I want to discuss the latest liquidation map data from Coinglass on July 8, showing you the potential “minefields” and opportunities in the BTC market. This market trend is not simple; the two key price levels of 110,000 and 106,000 are essentially the life-and-death lines for both sides. Let me break it down for you.
What is the liquidation map?
Let’s start with a brief explanation to avoid confusing newcomers.
The Liquidation Heatmap is a tool that displays the potential liquidation intensity of BTC at different price levels. The taller the bar, the denser the liquidation cluster at that price level; once the price touches it, it may trigger a “chain reaction,” causing price fluctuations to run wild. Note that this map does not tell you how many contracts will be liquidated but shows the “intensity” of liquidations, which is the market's sensitivity to a certain price level. Major players love to monitor this chart to find liquidity, and we retail investors need to learn to follow and benefit from it!
Data Highlights from July 8: According to the latest data from Coinglass and BlockBeats (July 8): If BTC breaks above 110,000, the short liquidation intensity on major CEXs (Binance, OKX, Bybit, etc.) reaches up to 996 million USD. This means that 110,000 is a “bear slaughterhouse”; once it breaks, a large number of short positions will be forcibly liquidated, significantly increasing the likelihood of a price surge.
If BTC drops below 106,000, the liquidation intensity for long positions is even more dramatic, reaching 1.309 billion USD! This means that 106,000 is the “lifeline” for bulls, and once it is breached, the liquidation of long positions could lead to a rapid price drop, likely making the bears very happy.
Upon seeing these two numbers, my first reaction is: the market is now like a powder keg, and 110,000 and 106,000 are the fuses! Currently, the BTC price is around 108,000 (OKX data, July 8 price approximately 107,977.3), swaying between these two key points, ready to ignite a big market movement at any time.
How do retail players view this?
As retail investors, we need to learn to “leverage strength against strength.” The essence of the liquidation map is that it exposes the vulnerabilities of leveraged players in the market. Major institutions and big players prefer to “make moves” where liquidation clusters are dense because, once these points are triggered, market liquidity skyrockets, and their large orders can be executed at lower costs.
The likelihood of breaking through 110,000: If BTC can stabilize above 110,000, the 996 million short liquidation intensity means the price could directly surge towards the historical high of 111,800 (data from May 22). This upward movement could be very rapid, as short liquidations would push prices up, creating a positive feedback loop. However, be cautious; after breaking 110,000, the market may experience a brief overheating, so be careful of the risks of buying at a high.
Risk of dropping below 106,000: Conversely, if BTC drops below 106,000, the 1.309 billion long liquidation intensity is no joke. Once the price drops, it could quickly slide down to 103,000 or even lower (golden finance mentioned a liquidation intensity of 521 million at 103,000 on June 1). This could be a “catastrophe” for high-leverage long players, so be sure to check if your stop-loss orders are set correctly!
My trading strategy combines the liquidation map and current market sentiment, and I’ve distilled a few strategies suitable for retail investors to share with everyone:
1. Range Trading Strategy: BTC is currently trading sideways between 106,000 and 110,000 (the X post on July 6 mentioned that the liquidation sizes around 107,400 and 108,700 are each about 200 million). In the short term, it may continue to fluctuate. You can go long with a light position near 107,000 and set a stop-loss at 106,000; or you can go short with a light position near 110,000 and set a stop-loss at 111,000. Don’t be greedy; make a small profit and run!
2. Breakthrough Trading: If BTC breaks above 110,000 and confirms a stable position (for example, if the closing price is higher than 110,000), you can go long, but don’t use too much leverage; 2-3 times is enough, targeting around 112,000. Conversely, if it drops below 106,000 and confirms a pullback, you can short with a light position, targeting 103,000.
3. Risk Management: The liquidation map tells me that 106,000 and 110,000 are high-risk areas, so don’t go all-in near these two levels. Always set a stop-loss; it’s advisable to place it in a zone with lower liquidation intensity, such as 105,000 or 112,000, to avoid being targeted by major players.
Pay attention to the major players' movements: The liquidation map is the “hunting ground” for whales.
Recently, a large amount of liquidity has accumulated near 109,000, indicating that major players may be brewing a new round of actions. Keep an eye on real-time data from CoinAnk or Coinglass and adjust your positions accordingly.
Market Sentiment and Background: The market has not been calm recently. On July 3, BTC surged to 110,000, leading to 329 million in liquidations within 24 hours, with 94,000 people losing their investments, indicating that high-leverage players have been washed out. Additionally, the recent crash in US stocks (losing 6.6 trillion in market value on April 3-4) has global funds searching for safe-haven assets, with BTC as “digital gold” attracting significant institutional funds (for example, Strategy bought 705 BTC). However, geopolitical and policy risks (Trump's tariffs, the situation in Iran) are also pushing up volatility, so retail investors need to remain flexible and not be led by emotions.
Final Thoughts: The liquidation map is our “perspective lens” as retail investors, helping us see the minefields and opportunities in the market. Data from Coinglass on July 8 shows that 110,000 and 106,000 are the current life-and-death lines for bulls and bears, with liquidation intensities of 996 million and 1.309 billion indicating that the market could explode at any time. As an individual player, I plan to use low leverage and quick in-and-out strategies, monitoring these two key levels for opportunities. Brothers, what do you think about this market trend? Feel free to discuss your strategies in the comments!