Bitcoin Liquidity HeatMap Analysis: Long vs Short July 8, 2023

• According to the 7-day liquidation levels heatmap of Bitcoin, there is a significant short position opening at the level of $31,600.
• Looking at the 1-month liquidation levels of Bitcoin, the z-score has reached $22.5 billion at the level of $31,700. This is a higher value than the z-score of $22 billion at $24,600.
• The Bitcoin liquidation levels graph shows that the first heavy transactions were taken as SHORT at the level of $30,820.

This article discusses Bitcoin’s liquidation heatmap and how it should be interpreted. Data for two different periods (7 days and 1 month) is analyzed and information is provided about possible price movements of Bitcoin.

Interpretation of Bitcoin’s 7-Day Liquidation Levels (Heatmap)

When examining the 7-day liquidation levels heatmap of Bitcoin, we see a significant short position opening at the level of $31,600. In the 7-day graph, long positions are active at $30,100, $30,000, and $29,900 levels. If the Bitcoin price makes an upward movement, it is expected that many short positions will be closed at the level of $31,600. It is important to note that a large portion of the recent $170 million liquidation includes LONG positions.

Interpretation of Bitcoin’s 1-Month Liquidation Levels Heatmap

When examining the 1-month liquidation levels of Bitcoin, we see that the z-score has reached $22.5 billion at $31,700, and this value is greater than the z-score of $22 billion at $24,600 for Bitcoin. This means that if Bitcoin surpasses $31,700, significant short positions will be closed. It seems more likely that Bitcoin will make a strong upward movement in the medium term if there are no setbacks. However, this is not an investment advice, please manage your risk yourself.

Bonus: Liquidation Levels Graph

When examining the Bitcoin liquidation levels graph, we see that the first heavy transactions were taken as SHORT at the level of $30,820. The 25x SHORT Bitcoin size is 196.4M. This situation means that if Bitcoin initiates an upward movement and succeeds in surpassing $30,820, many short positions will be closed and there will be a significant capital inflow into the market.

On the other hand, if the Bitcoin price shows a decline and wants to clear LONG positions, the first target will be $29,750, followed by $29,729 and $29,588 levels. When we look at the Cumulative Liq levels, we see that short positions are predominant at the moment.

Conclusion

Bitcoin’s liquidation heatmap provides important information about the current LONG and SHORT positions. These data can be used to understand the possible market trends and Bitcoin’s potential price movements. However, as always, these comments should not be considered as investment advice and each investor should determine their own risk.