BTC on May 17 – Price is sideways but long positions quietly endure
I observed the heatmap today and noticed something interesting: liquidity isn't evaporating, but it also isn't being pushed up as expected. A dense liquidation cluster appears around the 102,000–104,000 range, and the price hovers between two trap zones without decisively breaking out. If you're waiting for a pump or dump, it might be wise to lower short-term expectations.
At the 104,558 USD mark (2:40 PM), the system recorded liquidation leverage close to 90 million, meaning the leveraged positions are being "gradually burned" in the sideways region. This indicates that long positions are being gradually squeezed for margin, while short positions are gaining an advantage without needing to push hard.
Notable points include:
- The liquidation cluster below (near 102,000) is thicker and clearer than the 106,000 and above range
- The price tends to push down close to the short liquidation zones but does not break – this is often accompanied by the potential for a trap before a "shakeout"
Personal opinion:
- I do not see clear reversal signals. This is a stage where trading bots and big players often take advantage to "squeeze positions," causing small traders to panic and cut their losses. Personally:
- I will not long in the middle of the liquidation cluster, as upside potential is limited
- If the price closes a candle below 102,200, the probability of breaking below the liquidation zone is high – at that point, I might consider a short position down close to 100k
- If there is suddenly increased volume exceeding 106,000, I will consider going long on the breakout but will take profits quickly, not holding too long
