Bitcoin is sitting in a pressure cooker, boxed between $105,000 and $110,000 where billions in leveraged positions are clustered. According to Coinglass, a flush below $105,000 could force roughly $1.12B in long liquidations, while a push above $110,000 threatens about $1.26B in short liquidations. With price recently near $106,804 and volatility rising, this range is less a comfort zone and more a fuse—one that can ignite sharp, mechanical moves in seconds. Here’s how to trade it with intention instead of emotion.

What’s happening now

Coinglass’ liquidation heat map highlights dense liquidation clusters around $105K and $110K. A break below $105K can trigger a cascade of forced selling, driving rapid wicks and thinning liquidity. Conversely, clearing $110K risks a short squeeze as shorts are forced to buy back, accelerating upside. These are not traditional “support/resistance” levels; they are liquidity magnets that attract price to fuel liquidations.

Why this matters to traders

Liquidation cascades create one-way, short-lived moves that often overextend before snapping back. In a band like $105K–$110K, liquidity can briefly vanish, spreads widen, and slippage spikes. If you’re overleveraged or chasing breakouts without confirmation, you’re trading directly into mechanically driven flows—not organic demand or supply.

Actionable trading plan

• Prep the levels: Set alerts at $105,200 and $109,800. Predefine invalidation and limit risk to a fixed % of equity per trade.
• Sweep-and-reversal: If price wicks below $105K or above $110K and quickly reclaims the level (e.g., 5–15 min close back inside), consider fading the move with a tight stop beyond the extreme. First targets: mid-range (~$107.5K) and prior session VWAP.
• Breakout criteria: Only trade continuation when you see a 30-min close beyond the range plus supportive derivatives signals (rising Open Interest with price advance, spot leading perps, and funding not overly stretched). If OI spikes but price stalls, expect a squeeze the other way.
• Hedge with options: A near-dated straddle/strangle around the range can monetize volatility; manage Greeks and avoid holding through implied-volatility crush after the move completes.
• Monitor flows: Track funding, basis (spot vs perp), CVD, and liquidity pools; divergences near $105K or $110K often precede reversals.

Risk controls you shouldn’t skip

• Use lower leverage inside the band; liquidity can disappear during sweeps.
• Prefer limit orders near extremes; market orders can suffer heavy slippage.
• Avoid chasing mid-range; wait for edge at extremes or confirmed breakouts.
• Mind the calendar: macro data, ETF flows, and weekend liquidity can distort moves.
• Always place hard stops; don’t “hope” through liquidation zones.

What could flip the script

Unexpected catalysts—macro prints, ETF inflows/outflows, exchange outages, or large seller/whale activity—can invalidate intraday setups. If a catalyst drives sustained spot-led demand above $110K, shorts can unwind violently. If risk-off macro hits while near $105K, long liquidations can overshoot supports before stabilizing.

One takeaway

Trade the reaction, not the first impulse: let price sweep $105K or $110K, wait for confirmation of reclaim or acceptance, then act with defined risk.

Bottom line

The $105K–$110K corridor is a test of market psychology and forced-flow mechanics. Plan your entries, demand confirmation, and keep risk tight—this range rewards patience and punishes overconfidence.

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