Bitcoin has been struggling to recover after falling from $64,669 last month and is now trading near $58,669. As the market remains highly volatile, analysts warn that Bitcoin’s next liquidity move could trap both bulls and bears.
While one group sees a short squeeze pushing BTC toward $62,000, others believe the market may first revisit the $50,000 liquidity zone before the next major rally begins.
$62K Holds the Biggest Short Liquidation Target
Looking at the Bitcoin Exchange Liquidation Map, market analyst Seth believes Bitcoin Price has already cleared one important liquidation zone. When Bitcoin recently fell to around $57,800, nearly $1.16 billion worth of leveraged long positions were liquidated.
According to Seth, that liquidity has now been “grabbed,” meaning that overleveraged longs trader taken out.
After the recent bounce to near $59K, Seth believes many traders are again trying to buy the bottom. The chart shows another $1.16 billion worth of leveraged long positions building around the $57.8K level, meaning traders are once again betting that Bitcoin has found a bottom.
Seth calls these traders “degens” because many are using extremely high leverage, sometimes as much as 100x.
However, Seth says the much bigger opportunity sits above the market. Around $62,000, there is nearly $4.14 billion in cumulative short liquidations. If Bitcoin climbs into that zone, short sellers may be forced to buy back their positions, pushing the price even higher.
Bitcoin to Visit $50K, Before Rally Begins
Adding another perspective, crypto trader SantinoCripto analyzed Bitcoin’s 1-day liquidation heatmap and highlighted another key signal. According to him, the largest concentration of liquidity is currently sitting between $50,000 and $57,000, making this one of the most important price zones to watch in the coming weeks.
As per his analysis, markets often move toward areas where the most liquidity is concentrated, making it likely that Bitcoin could revisit this zone over the next one to two months.
If that happens, the $50,000-$52,000 range could become the new bear market floor.
Supporting this view, crypto analyst Ali Martinez noted that a drop to $50,000 would liquidate nearly $70 million worth of long positions, which could increase selling pressure before the market finds a stronger bottom.
History Still Favors Bitcoin in July, With an Average of 7% Return
Despite the short-term uncertainty, historical data remains positive. Looking at the Bitcoin monthly return chart, BTC has finished July in positive 9 out of the past 13 years, with an average monthly return of around 7%.
Crypto researcher Fleh remains bullish, saying Bitcoin’s monthly Binance liquidation heatmap shows significant short liquidity above current prices. One major cluster sits near $67,645, containing roughly $247 million in liquidation leverage and about $2.26 billion in cumulative short liquidations.
Based on that liquidity, Fleh believes Bitcoin could first recover toward $75,000 before any larger correction has a chance to develop.
Was this writing helpful?
Story Ends Here
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Read the Next News
