The show begins! BTC bull and bear battle, who will be the first to be liquidated?
Current situation: BTC has reached a new high
BTC is currently at its peak, with 80% of the bears being killed. Looking up, there are still a bunch of shorts waiting to be "harvested" at 113,000, and looking down, there are a large number of bulls that could "liquidate" at 106,500 at any moment.
Data speaks: The exchange's "harvesting plan"
Calculations show that the area of short liquidations above is greater than the area of long liquidations below. What does this mean?
For example: It's like a fisherman discovering that the fish are denser upstream than downstream, so he will surely choose to cast his net upstream. The exchanges are the same; the shorts above are more lucrative, and making profits by going long to harvest the shorts is more advantageous.
Key price levels: Where is the lifeline?
Above 112,800: The "nightmare threshold" for the shorts; breaking through could lead to a chain liquidation
Below 106,500: The "defense line" for the bulls; losing it could trigger an avalanche of liquidations
Real case review: Do you remember last year when BTC plummeted from 28,000 to 25,000? It was because it triggered a dense area of long liquidations, resulting in 1 billion dollars evaporating within hours!
The exchange's "business logic"
The simple and brutal truth: Exchanges are not charitable institutions; they will choose the direction that yields higher profits. 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!
However! 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.
A single tweet from Trump can instantly change BTC's face
Institutional funds can easily "reverse" liquidation logic
Market sentiment is more important than technical analysis
This analysis is like a weather forecast; it can be referenced but should not be fully relied upon. Cryptocurrency risk is on a red alert, losing all capital is the norm, while getting rich overnight is the exception.
Remember: You think you are trading coins, but in fact, you are just the "dish" on the exchange's table! Stay calm and rational, and respond to market changes with a stable strategy!
