Journalist
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Key Takeaways
Bitcoin’s liquidation heatmap shows heavy overleveraged longs at $105k. Does BTC have the bid to absorb it, or is a deeper, long squeeze to $100k coming?
On the daily chart, Bitcoin [BTC] is holding up.
Since the $124k all-time high on the 14th of August, BTC has printed three lower lows. Each time, BTC spent a few days chopping tight before snapping the floor and hitting late-long stops.
However, the third low at $107.5k is looking different. BTC’s been grinding under $110k for four days straight, with sub-1% daily moves, much tighter than the usual 1.5-3% swings we saw on prior breakout attempts.
Source: TradingView (BTC/USDT)
That suggests bulls are “strategically” repositioning into BTC.
Reinforcing this shift, Bitcoin dominance (BTC.D) is bouncing off 57%, up 1.52%, suggesting capital might be rotating back and treating $107k as a discounted “dip” or a local bottom.
But heads up, there’s a caution. The last three failed rebounds saw Bitcoin Open Interest (OI) spike above $83 billion, showing aggressive leverage chasing directional bets. Now, the same pattern seems to be forming again.
Overleveraged longs test Bitcoin’s strength
Bitcoin’s indecision is showing on-chain.
For starters, smart money’s moving out, institutions are sitting tight, and STH NUPL is still red. At the same time, over 60% of BTC/USDT perpetual contracts on Binance are skewed long.
In fact, since BTC cracked the first lower low under $110k in mid-August, overexposed longs have been stacking, highlighting the risk as BTC’s OI keeps spiking past $83 billion. The result? Repeated long sweeps.
Source: CoinGlass
Simply put, Bitcoin’s stuck in a rinse-and-repeat range.
To break out, bids need to absorb the overexposed longs below $110k before taking on the massive shorts above. Technically, BTC is holding, but the lack of fresh accumulation keeps it exposed.
Therefore, a fourth lower low isn’t off the table. In fact, another long squeeze could be brewing beneath the surface. If risk-off stays in play, bears could drag Bitcoin back toward $100k.
