The increased activity on the Bitcoin (BTC), futures market is a major factor in short-term prices. This action keeps returning to leveraged positions. Prices are influenced by the concentration of liquidity. Bitcoin is currently fighting to keep above $64,000. Reviewing current liquidation scenarios could provide some insight on BTC’s next move.
The liquidation heatmap indicates a concentration of shorts between $65,500-$66,00. That is roughly 3% from the current price. Pushing through the $65,600 threshold could put this shelf into play, and accelerate a bigger rally to $67,000.
Support is found in the range of $63,500-$63.750, the nearest cluster being 1%, while larger liquidity pools can be found between $63,000-$63.250 (about 1.5% lower) and $62,500-62.775 (about 2.3% less).
The combined long-side and short-side liquidities are nearly 2 to 1. This could indicate that most of the leverage built over the last month is still not fully exhausted.
BTC liquidation heatmap, 1-month lookback. Source: Hyblock
The chart shows that in the worst case scenario, the liquidation zone near $55,000 is the largest and most prominent. It has been visible for the entire month. The price could be affected if the resistance between $62,500-$63,750 gave way.
Bitcoin’s open interest rate and aggregate funding rate support this opinion.
BTC volume spot flows and total volumes. Source: Hyblock
Spot and Futures flow have been favored by the buyers over the last week, as the funding has cooled to neutral.
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Source: cointelegraph.com
