Bitcoin Could See Long Squeeze to $100K as Overleveraged Longs Accumulate Around $105K

• Overleveraged longs clustered under $110k create squeeze risk

• Open Interest topping $83 billion while BTC dominance rebounds to ~57% suggests rotation into BTC but limited fresh accumulation

• Binance perpetuals show >60% long skew; repeated long sweeps occurred after prior lower lows

Bitcoin liquidation heatmap shows clustered longs under $110k — act cautiously; read analysis and prepare hedges.

What is the Bitcoin liquidation heatmap telling traders?

The Bitcoin liquidation heatmap highlights areas where leveraged long and short orders cluster and are vulnerable to cascading stops. It shows overleveraged longs concentrated below $110k, signalling risk of a rapid long squeeze if bids fail to absorb positions. Traders use this to map likely stop-run zones and liquidity points.

How could overleveraged longs trigger a Bitcoin long squeeze?

Overleveraged longs create a domino effect: a modest sell impulse forces liquidations, which amplify selling and push price lower. Currently, Open Interest has repeatedly surged past $83 billion after failed rebounds. More than 60% of BTC/USDT perpetual contracts on major venues are skewed long, increasing vulnerability to a concentrated unwind.

Data points: BTC dominance is near 57% and has ticked up ~1.5% recently, implying capital rotation into BTC rather than fresh broad-market buying. Short-term holder NUPL remains muted, indicating institutions and long-term cohorts are not aggressively adding, leaving retail and leveraged traders exposed.

Source: TradingView (BTC/USDT)

Why does current price action increase squeeze probability?

Price action is grinding under $110k for multiple sessions with sub-1% daily moves, unlike prior 1.5–3% swings. That compressive action often precedes a volatile release as liquidity pools build.

Repeated lower lows since the mid-August peak demonstrate sellers can breach tight ranges and trigger late-long stops. With OI spiking above $83 billion and elevated long skew, a sudden downside move could cascade into a deeper sweep toward $100k.

How should traders manage risk ahead of a potential long squeeze?

Plan scalable hedges and size positions conservatively. Use tight, predefined stop levels and consider options or inverse products to cap downside. If you trade leverage, reduce exposure around clustered liquidation zones and monitor Open Interest and long/short skew in real time.

Practical steps:

1. Reduce leverage near $110k and below prior lower lows.
2. Deploy small, staggered protective hedges (short futures or puts).
3. Monitor OI and funding rates to gauge leverage exhaustion or relief.

Source: CoinGlass

Frequently Asked Questions

Could Bitcoin drop to $100k on a long squeeze?

Yes. If bids fail to absorb clustered long positions under $110k and Open Interest retraces from elevated levels, a cascade of liquidations could push price toward $100k within a short timeframe. Probability rises when long skew and funding rates remain elevated.

How can traders hedge against a fast downside move?

Use staggered protective hedges: reduce leverage, buy puts or construct short futures positions sized to your risk tolerance. Keep hedges granular and adjust as OI and funding signals change.

Key Takeaways

• Clustered longs under $110k: Present a clear stop-run target and raise squeeze probability.
• Open Interest > $83B: Elevated OI indicates crowded positioning and amplified move risk on a trigger.
• Risk management actionable: Traders should reduce leverage, use staggered hedges, and watch OI/funding signals.

Conclusion

The Bitcoin liquidation heatmap signals concentrated long exposure below $110k and heightened long-squeeze risk if bids cannot absorb excessive leverage. Monitor Open Interest, long/short skew and funding rates closely. Traders should prioritize risk management and scalable hedges as market structure remains fragile; COINOTAG will continue to monitor on-chain and market indicators.