Bitcoin's Liquidity Signals Point to Potential Short Squeeze

Bitcoin's liquidity signals are pointing towards a potential short squeeze that could propel the cryptocurrency's price to $111,000, according to analyst Kevin (@Kev_Capital_TA). Despite Bitcoin hovering below the crucial resistance at $96,500, the liquidation heatmap on Binance's BTC/USDT pair is sending strong signals of a possible upside move.

Kevin shared his insights alongside the liquidation heatmap, noting significant liquidity pools forming both above and below Bitcoin's current trading range. He explained that the data suggests large liquidity, where traders' positions would be forced to liquidate, is now stacked around the 91K region and, more crucially, near the 111K mark. While the lower zone might still see occasional sweeps, it is the massive cluster of liquidity around 111K that has prompted him to forecast a potential move to that level.

Kevin emphasized that many market participants are fixated on altcoins rather than monitoring Bitcoin's liquidity structure, overall market capitalization, and USDT dominance. He argues that traders' narrow focus on individual altcoins, rather than these broader metrics, is causing them to miss critical signals. In his view, Bitcoin's heatmap currently shows billions of dollars in potential liquidations concentrated at higher levels (111K) and a significant liquidity block below (around 91K). The presence of this deep liquidity on the upside has led Kevin to anticipate a "bigger relief rally" that might force out short positions en masse.

Alongside liquidity data, Kevin also cites sentiment indicators such as the Fear & Greed Index, currently reflecting a "fear" reading. From his standpoint, this environment suggests that the market's emotional extremes—coupled with heavy positioning—could be setting the stage for a swift momentum shift higher, as negative sentiment often accompanies local bottoms.

At press time, BTC traded at $96,334.