BTC Plunge: Decoding the Price Collapse & Liquidation HeatMap Patterns

Bitcoin's sudden descent sends shockwaves through crypto markets

Liquidation cascades trigger domino effect across exchanges

Heat maps reveal concentrated sell pressure zones

Market structure fractures under weight of leveraged positions

Whale movements and institutional exits amplify downward spiral

Technical support levels crumble like regulatory promises

The great crypto correction exposes just how thin the line between digital gold and digital fool's gold really is

Bitcoin is making a buzz again, but not for the reasons bulls had hoped. Over the past day, BTC’s price slid 4.53% to $105,606.24, and a daunting 12.73% over the past week. The market cap shrank 4.48% to $2.1 trillion, and trading volume soared 35% to $95.31 billion. What’s driving this sudden sell-off? It’s a mix of institutional moves, macroeconomic anxieties, and technical blockages that set the stage for a harsh drop.

First, $536 million poured out of U.S. spot Bitcoin ETFs as key funds slashed exposure. Geopolitics haven’t helped either. But the real tipping point came from the chart, as BTC crashed through $110,000. All eyes are now on whether Bitcoin can hold above the critical swing low of $104,582 from September or if we’re on the edge of a deeper slump.

Bitcoin Liquidation HeatMap

The liquidation landscape by CoinGlass reveals just how vulnerable Bitcoin is in this climate. Looking at the Bitcoin Liquidation HeatMap, you can see heavy clusters of liquidation leverage stretching from $109,000 down to the $105,000 area. The map flashes sudden bright bands, this is where Leveraged positions are forced to unwind.

If BTC continues dipping and cracks below $104,582, things could get rapidly chaotic. The liquidation pressure shown in green and yellow bands signals pockets where traders are most exposed. Especially those using high leverage in hopes of a rebound. Right now, the HeatMap is a warning that further drops could see cascading liquidations if sentiment doesn’t stabilize.

BTC Price Analysis

Technically, the Bitcoin price is staggered. The breach below the 200-day SMA at $107,535 and the Fibonacci support at $109,208 triggered a burst of algorithmic selling. This is with price now hovering dangerously close to the September swing low of $104,582. The RSI at 37 shows BTC in oversold territory, and the MACD histogram at -1,339 paints an even bearish picture.

If sellers lose grip and BTC falls below $104,582, we could see panic selling trigger a further drop. Potentially opening the door to sub-$100,000 levels, especially if liquidation bands intensify. On the upside, first resistance sits at $107,696, then a tougher zone at $109,208.

FAQ

BTC is plunging due to heavy ETF outflows, global macro risks, and a breakdown of key technical levels, triggering algorithmic orders and panic-driven liquidation.​

The Liquidation HeatMap tracks clusters where highly leveraged positions are vulnerable. If price hits these zones, forced liquidations spike, causing accelerated selling and sharp price moves.​

Immediate support sits at $104,582, with major resistance at $107,696 and $109,208.