$BTC fell below $73,000, hitting its lowest level since September.
More noteworthy than the price drop is the change in the liquidation heatmap.
A drop below $71,000 would trigger about $602 million in long liquidations; a rise above $75,000 would trigger about $480 million in short liquidations.
Compared with November 3, liquidation volumes on both sides have shrunk significantly.
Many highly leveraged positions built up earlier have already been cleared out, and the market is gradually reducing its leverage.
My take: BTC's current weakness doesn't necessarily mean bears are getting stronger; it could also mean that long deleveraging isn't over yet.
Next, I'm keeping a closer eye on two levels:
$71,000: If BTC falls below this level, we still need to watch for further long liquidations.
$75,000: If BTC climbs back above this level, it could trigger short covering and fuel a rebound.
One thing to keep in mind: the liquidation heatmap shows the potential distribution of liquidations. It doesn't mean those funds will definitely be liquidated, and it shouldn't be treated as a direct price forecast.
Prices are falling, and leverage is fading.
The next market move may come down to who puts real money on the line first.
More noteworthy than the price drop is the change in the liquidation heatmap.
A drop below $71,000 would trigger about $602 million in long liquidations; a rise above $75,000 would trigger about $480 million in short liquidations.
Compared with November 3, liquidation volumes on both sides have shrunk significantly.
Many highly leveraged positions built up earlier have already been cleared out, and the market is gradually reducing its leverage.
My take: BTC's current weakness doesn't necessarily mean bears are getting stronger; it could also mean that long deleveraging isn't over yet.
Next, I'm keeping a closer eye on two levels:
$71,000: If BTC falls below this level, we still need to watch for further long liquidations.
$75,000: If BTC climbs back above this level, it could trigger short covering and fuel a rebound.
One thing to keep in mind: the liquidation heatmap shows the potential distribution of liquidations. It doesn't mean those funds will definitely be liquidated, and it shouldn't be treated as a direct price forecast.
Prices are falling, and leverage is fading.
The next market move may come down to who puts real money on the line first.
