Recently, I’ve been studying the liquidation heatmap, and it’s quite interesting. BTC at the 100,000 level and ETH at 3400, with shorts piled up like a mountain. From the chart, these two levels look like clear "attack coordinates" for the bulls.

Having traded for many years, I have an observation: when liquidation data is so obviously concentrated, it often becomes a target for price chasing. The market vampire’s instinct is to hunt down those overly concentrated positions, especially when this data is visible to everyone.

But there’s a trap to watch out for—while squeezing out shorts is satisfying, longs can also be caught off guard. The liquidation heatmap is a double-edged sword. The real situation is: when longs push up to clear out shorts, if the subsequent buy volume doesn’t follow, it can lead to a classic trap—诱多 (false breakout) → deep retracement.

My view is that instead of treating these dense liquidation zones as direct buy signals, it’s better to see them as resistance levels. The real opportunity lies in a pullback after breaking through these levels for confirmation. By then, shorts are mostly wiped out, and the cost basis for longs is safer. Positioning this way increases the win rate.