Market analysts at Alphractal have flagged a potential surge in Bitcoin volatility, noting that if BTC breaks above the $110,000 threshold, it could set off a cascade of bear liquidations.
Their latest market liquidity heatmap shows dense clusters of liquidation levels just above current price levels—areas where short sellers would be forced to close out their positions if prices spike.
According to Alphractal, Bitcoin frequently exhibits deceptive price moves designed to trap traders on the wrong side of the market.
These so-called liquidity traps appear just before major breakouts or sharp declines, catching many off guard. The analysis highlights how Bitcoin has a tendency to lure traders into premature decisions—faking dips before rallies and spiking upward just before dumping.
Two aggregated heatmaps—one covering the past month and another zooming in on the last seven days—reveal concentrated zones of potential liquidations. The areas highlighted in orange and red signify zones of high short exposure, meaning a swift price move upward could force a wave of buybacks from liquidated bears.
With Bitcoin now consolidating just below key resistance, a breakout could trigger a rapid move fueled by automated liquidations and FOMO-driven buying.
As the market awaits the next major move, traders are watching for signs of a breakout that could quickly flip sentiment and accelerate Bitcoin’s upward momentum.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/market/bitcoin-nearing-110k-could-trigger-major-bear-liquidations-analysts-warn/