$BTC
BTC
65,586
-2.59%
Post
BlackCat Trading Mindset
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Short Liquidations Are Building — Is This the Fuel for $BTC’s Next Squeeze?
From the top to the recent lows, $BTC has been cut nearly in half. A brutal reset that flushed leverage and confidence across the board. Since then, price has recovered more than $10K — and now the real question begins:
Is this just a relief bounce… or the setup for a larger squeeze?
Looking at the liquidation heatmap, one thing stands out clearly. Short liquidations are stacked heavily above price, especially from the $72K region and higher. If BTC pushes into that zone, leveraged shorts will be forced to close. And when shorts get liquidated, they have to buy back BTC.
That forced buying can create a chain reaction — a classic short squeeze. Price accelerates, more shorts get liquidated, more forced buying kicks in, and momentum feeds on itself.
Right now, the imbalance is important. Most overleveraged longs were already wiped out during the drop. Funding reset. Sentiment cooled. Traders got cautious. When long-side leverage is mostly cleared and fear creeps in, the market often finds room to squeeze upward.
But the downside liquidity isn’t completely gone.
There’s still notable long liquidity sitting around $66.8K and deeper near the $64K zone. If the market wants to fully clean the board, a sweep into that area is still possible before any sustained move higher.
So the two scenarios to watch are simple:
1. Price pushes into $72K–$74K and triggers the short cluster above, fueling a sharp squeeze.
2. Price dips back toward $66K (or lower), clears remaining long liquidity, and only then builds a stronger base.
At this stage, it’s less about “bullish vs bearish” and more about liquidity hunting. Markets tend to move toward where trapped money sits. And right now, there’s bait on both sides.
The key takeaway?
Don’t mistake a $10K bounce for a confirmed trend reversal. But don’t panic just because liquidity still sits below either. We’re in a compression phase — and when the breakout comes, it likely won’t be subtle.
Stay disciplined. Watch liquidity, not emotion.
Let the market choose its target first — then position accordingly.
$BTC
{future}(BTCUSDT)
Is this just a relief bounce… or the setup for a larger squeeze?
Looking at the liquidation heatmap, one thing stands out clearly. Short liquidations are stacked heavily above price, especially from the $72K region and higher. If BTC pushes into that zone, leveraged shorts will be forced to close. And when shorts get liquidated, they have to buy back BTC.
That forced buying can create a chain reaction — a classic short squeeze. Price accelerates, more shorts get liquidated, more forced buying kicks in, and momentum feeds on itself.
Right now, the imbalance is important. Most overleveraged longs were already wiped out during the drop. Funding reset. Sentiment cooled. Traders got cautious. When long-side leverage is mostly cleared and fear creeps in, the market often finds room to squeeze upward.
But the downside liquidity isn’t completely gone.
There’s still notable long liquidity sitting around $66.8K and deeper near the $64K zone. If the market wants to fully clean the board, a sweep into that area is still possible before any sustained move higher.
So the two scenarios to watch are simple:
1. Price pushes into $72K–$74K and triggers the short cluster above, fueling a sharp squeeze.
2. Price dips back toward $66K (or lower), clears remaining long liquidity, and only then builds a stronger base.
At this stage, it’s less about “bullish vs bearish” and more about liquidity hunting. Markets tend to move toward where trapped money sits. And right now, there’s bait on both sides.
The key takeaway?
Don’t mistake a $10K bounce for a confirmed trend reversal. But don’t panic just because liquidity still sits below either. We’re in a compression phase — and when the breakout comes, it likely won’t be subtle.
Stay disciplined. Watch liquidity, not emotion.
Let the market choose its target first — then position accordingly.
$BTC
{future}(BTCUSDT)
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.