🍿The show is on! BTC long and short battle, who will be liquidated first?
💡 What is a liquidation chart? Understand it in 5 seconds!
Imagine a liquidation chart as a "liquidation map." The orange bars represent players with 100x leverage, and the yellow ones are at 50x, like tightrope walkers on the edge of a cliff, a slight misstep could lead to a fall.
🎯 Current situation: BTC is hovering around $109,000.
The current BTC is like a person standing at a crossroads, looking up at 111,000 where a bunch of shorts are waiting to be "harvested," and looking down at 106,500 where a large number of longs could "liquidate" at any moment.
🔍 Data speaks: The exchange's "harvesting plan"
Calculations show that the liquidation area for shorts above > the liquidation area for longs below. What does this mean?
For example: just like a fisherman finds that the fish pile upstream is denser than downstream, he will definitely choose to cast his net upstream. The exchanges think the same way; the shorts above are more lucrative, making it more profitable to go long and harvest the shorts.
⚡ Key price levels: Where is the lifeline?
Above 111,000: The "nightmare threshold" for shorts, breaking through could trigger a chain reaction of liquidations.
Below 106,500: The "defensive line" for longs, losing this level will trigger an avalanche of liquidations.
Real case review: Do you remember when BTC plummeted from 28,000 to 25,000 last year? It was triggered by hitting the dense area of long liquidations, evaporating a billion dollars in just a few hours!
🎪 The exchange's "business logic"
The simple and brutal truth: exchanges are not charitable organizations; they will choose the direction with better returns. Current data shows that pushing prices up to harvest shorts is more "cost-effective" than crashing prices to harvest longs.
⚠️ Risk warning: Don't be fooled by the data!
But! The liquidation chart is just a "map," not a "GPS navigation." Large funds can completely ignore this data, just like a giant ship can easily break through a fishing net.
Remember:
A single tweet from Musk can make BTC change its face in an instant.
Institutional funds can easily "reverse" liquidation logic.
Market sentiment is more important than technical analysis.
🚨 A little advice
This analysis is like a weather forecast; it can be referenced but not completely relied upon. Cryptocurrency risk is on red alert, losing the principal is the norm, and getting rich overnight is the exception.
Remember: You think you are trading coins, but in fact, you are just "food" on the exchange's table!
