According to the latest data from the liquidation heat map, Bitcoin’s price is currently navigating between two critical zones: $106,000 and $108,000. These areas are surrounded by leveraged positions exceeding $150 million. As algorithms designed to capture liquidity and high-volume traders react to this growing imbalance, it appears that significant market movements will likely target one or both of these levels.
The Path of Bitcoin
Currently trading around $106,700, Bitcoin hovers just beneath its 200-day EMA—a historically significant support line often marking transitions between bullish and bearish phases. The recent drop from $120,000 triggered a wave of forced selling activities that led to a sharp decline in open interest and the liquidation of long positions across major exchanges.
As efforts continue to stabilize leverage in the market, CoinGlass heat map readings highlight that liquidations totaling approximately $150 million within the range of $106,000-$108,000 are driving price dynamics. This tension is further corroborated by technical indicators; for instance, Bitcoin’s RSI has fallen into oversold territory at 36 while trading volumes remain robust—indicating persistent fear-driven actions.
The Brewing Storm
The short-term battle lines are drawn with dense liquidity clustering at the lower boundary of $106,000 while bullish defenses stand firm at $108,000. A new pocket of liquidity could potentially form below this level if prices cascade toward a range between $103,000-$104,000.
If Bitcoin manages to reclaim ground above its 200 EMA with a close over $108,000, it might spark a relief rally aiming for targets around 112,000–114,&0&