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BITCOIN LIQUIDATION HEAT MAPS
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Now it is time to look at the Bitcoin liquidation heat maps and get an accurate, up-to-date perspective on where the liquidity is sitting.
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Starting with the three-month Bitcoin liquidation heat map, the overall long-term target remains below Bitcoin’s current price.
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On the one-month Bitcoin liquidation heat map, there is still a level sitting around $92,000.
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That level is looking slightly less bright than it did the other day, while the liquidity below $70,000 is becoming brighter.
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Those are the two main changes on the one-month chart.
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Moving onto the one-week Bitcoin liquidation heat map gives us a more short-term picture.
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There is a ton of trapped liquidity sitting just above $87,000. There is also trapped liquidity below $84,000.
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That confirms what I already thought: Bitcoin is stuck inside a range, and I am waiting for a breakout backed by volume.
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Dropping down again to the three-day chart, it visually appears far more likely that Bitcoin will break upwards towards $87,000.
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Based purely on how people interpret the colours on a heat map, a move down looks much less likely than a move upwards into the yellow liquidity.
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However, that is not how liquidation heat maps work.
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The heat map is not predicting that Bitcoin must move towards the brightest colour. It is simply showing where the liquidity exists.
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That yellow liquidity becomes even brighter and more obvious on the 48-hour chart.
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The largest concentration is sitting between approximately $87,000 and $87,500.
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If Bitcoin breaks above $87,000, it is highly likely that the price reaches $90,000 very, very quickly.
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The market is compressing right now.
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The next thing I am very interested in analysing is the Bitcoin aggregated open interest chart.
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