Blockchain

Bitcoin Liquidity Signals A Brutal Squeeze To $111,000: Analyst – Crypto News

Published

4 days ago

February 20, 2025

Dripp

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While the Bitcoin price is hovering below the crucial resistance at $96,500, the liquidation heatmap on Binance’s BTC/USDT pair is sending powerful signals of a potential short squeeze to the upside. Analyst Kevin (@Kev_Capital_TA) shared his insights alongside the attached liquidation heatmap, noting signs of significant liquidity pools forming both above and below Bitcoin’s current trading range.

“What we’re seeing over the last couple of days is lining up perfectly with what I have been saying,” Kevin explained, referencing his earlier market calls. “Sweep liquidity towards 91K which we did yesterday. Maybe we take more maybe we don’t but overall I have never seen this much liquidity to the upside on the monthly time frame on #BTC.”

Binance BTC/USDT Liquidation Heatmap | Source: X @Kev_Capital_TA

According to Kevin, the data strongly suggests that large liquidity—where traders’ positions would be forced to liquidate—is now stacked around the 91K region and, more crucially, near the 111K mark. While the lower zone might still see occasional sweeps, it is the massive cluster of liquidity around 111K that has prompted him to forecast a potential move to that level.

What The Bitcoin Liquidation Heatmap Tells Us

A liquidation heatmap illustrates where large batches of leveraged positions—such as futures or margin trades—are most likely to be force-closed if the price reaches certain levels. When many traders place stop-losses or maintain heavily margined trades around similar price points, these zones often accumulate as “hot spots” on the heatmap. If price action nears these clusters, it can trigger a chain reaction: forced liquidations drive further price movement, which can then cascade into a faster squeeze or sell-off.

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In Kevin’s view, Bitcoin’s heatmap currently shows billions of dollars in potential liquidations concentrated at higher levels (111K) and a significant liquidity block below (around 91K). The presence of this deep liquidity on the upside has led Kevin to anticipate a “bigger relief rally” that might force out short positions en masse.

“Now as we can see […] we have billions in liquidity to the upside at 111K. More than I have ever seen on the 1M time frame,” he remarked, emphasizing how unusual he finds this month-long concentration. “It would be totally fine and preferable if we swiped [the 91K area] first to build up even more liquidity to then start the real relief rally.”

Alongside liquidity data, Kevin also cites sentiment indicators such as the Fear & Greed Index, currently reflecting a “fear” reading. From his standpoint, this environment suggests that the market’s emotional extremes—coupled with heavy positioning—could be setting the stage for a swift momentum shift higher, as negative sentiment often accompanies local bottoms.

“You can tell this relief rally wants to get going but it’s just not totally there yet […] I see no reason to be overly bearish on this market. You guys need to calm down and stop being so angry. Stop being so soft.”

At press time, BTC traded at $96,334.