The chart and liquidation heatmap show three key liquidity zones that will determine the next move as Bitcoin enters a critical phase following its violent capitulation and sharp rebound. These clusters are pockets of leveraged interest, where liquidation sweeps can quickly increase volatility.
Following a significant, volume-driven reversal, Bitcoin has stabilized in the mid-$80,000 range, and the market is now getting close to areas where liquidity concentration takes over as the primary driver.
First cluster
The main upside magnet is the $90,000-$92,000 liquidity cluster. A wide, dense band of liquidity above the current price at about $90,000 is visible on the heatmap. There are a lot of short liquidations in this zone, so any upward continuation could cause a cascading squeeze as those positions unwind.
Regaining the $90,000 level would also put Bitcoin back within striking distance of the 20-day EMA and start to close the gap toward the higher trend structure. Because forced short covering often results in fast candles, you should anticipate a spike in volatility and a quick acceleration of the move if the price approaches this cluster.
Second battleground
The current battleground is the $86,000-$87,000 liquidity shelf. Bitcoin is currently trading right inside a significant liquidity shelf that is indicated on the heatmap. Both short-term long liquidations and short liquidations are present in this area, making it a mixed zone in which neither party has complete control.
This area corresponds with the first significant bullish reaction following capitulation on the price chart. It creates the conditions for a grind upward, if BTC can stay above this shelf. The market is susceptible to another sweeping flush if it drops below this level.
Liquidity trap
A much larger liquidity pool, which is thick and bright on the heatmap, is located below the price. Massive, protracted liquidations are located here. A decline into this area could lead to a violent, transient flush and would almost certainly result in forced selling. From a structural perspective, this area is the final significant support before Bitcoin runs the risk of falling into the mid-$70,000s. The bulls cannot afford to lose this territory.
What to anticipate next? A significant squeeze could spark a more robust recovery if Bitcoin holds the mid-$80,000 level and moves into the $90,000 liquidity band. However, if it is pulled into the deep liquidity trap at $83,000, there will not be any chance for stabilization until there is another quick sell-off.