#Bitcoin ’s Price Action and Liquidity Landscape

One of the most insightful tools for analyzing Bitcoin’s price behavior in volatile conditions is the liquidation heatmap, which highlights key liquidity zones where stop-loss orders and margin calls are likely to cluster.

The heatmap shows that the $112,000 to $114,000 zone, often referred to as a “magnetic zone” due to its frequent influence on price action, was recently swept by sellers.

Below this, there is a larger liquidity pocket around $106,500, though not all liquidity zones must be tested or filled for the market to find a base.

Historically, Bitcoin has demonstrated an ability to bypass some liquidity pools in favor of more attractive levels. For example, in late June, $BTC absorbed liquidity near $99,800 and subsequently rallied higher rather than dropping further to the nearby support at $97,000, another magnetic zone.

On the upside, liquidity becomes sparse as Bitcoin approaches the $120,000 highs, which remain a probable target—assuming BTC has indeed formed a local bottom and is gearing up for an upward push.