The Bitcoin derivatives market shows where the next price reactions may occur. The breakout map highlights leveraged positions tracking on the Binance BTC/USDT perpetual market high-leverage trades clusters located above the current market price. This procedure provides information about what the future of Bitcoin looks like price movement may occur, How many short traders can be eliminated in the next search and what can happen after that.
A massive wall of short liquidation is about $71,800
Bitcoin has lost more than $70,000 in trades over the past 24 to 48 hours. offering an early look at What price action can happen for the leading cryptocurrency during March. It is interesting to see the technical analysis of BTC liquidation heat map on Binance, Posted by X Sherlock’s crypto analyst shows high-quality trading clusters that are located only from the current market price. This is noteworthy because clusters often influence price direction, as markets tend to move into areas where a large amount of forced liquidation occurs.
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Of all the primary purpose of liquidity According to the chart, the exposure is around $71,800, where a tight concentration of short liquidation has formed. This area is dominated by extremely high leverage positions, especially 50x and 100x leverage, which indicates that many Bitcoin traders believe that Bitcoin cannot recover from $72,000.
As shown in the Coinglass breakout chart below, the vertical breakout bars around $71,000 to $72,000 are significantly larger than the surrounding levels. This indicates an increase in short positions, which will be forced to buy back Bitcoin if the market rises to this area. Therefore, a move to this level can lead to a chain reaction of liquidation, which in turn helps to increase the short positions.
BTC/USDT Liquidation Chart. Source: @Sherlockwhale On X
What happens after liquidation?
After the $71,800 level, the liquidation structure the map changes significantly. The bars on the chart are getting thinner in the $72,000 to $76,000 range and the cumulative liquidation curve is flattening. This means that when the initial wave of short-term liquidation begins, there may not be enough additional liquidation fuel to sustain a longer rally.
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According to Sherlock, this forced buying from the liquidated shorts could push Bitcoin between $71,800 and $75,000, but would be an extension of the rally beyond that point. need real buyers and organic demand. No forced purchase.
At the time of writing, Bitcoin is trading at $70,500. The leading cryptocurrency faced steady downward pressure throughout the month of February, although signs of gradual accumulation of points are emerging and this may contribute to a stable rally in March.
If new buyers do not support the price after receiving liquidity at $76,000, then the price may lose momentum quickly. In this case, the price can dropped right below $60,000.
Featured image created with Dall.E, chart from Tradingview.com
