Bitcoin (BTC) has continued to climb in the wake of the ceasefire between Iran and the US, and it has now reclaimed the $73,000 level as geopolitical tensions cool and oil prices drop.
The move has kept momentum building after the initial surge following the truce, with some analysts arguing that the market is approaching a point where short positions could be forced to unwind rapidly.
Bitcoin Nears Key Liquidity Zone
In a Friday assessment, market analyst Ali Martinez said attention is shifting to a large liquidity pool sitting just above the current price region. His view is that shorts are increasingly “trapped,” and that the window for exits is tightening.
Martinez suggested that a push toward $75,300 could wipe out roughly $80 million worth of short positions. He warned that this could set off a cascading effect—an initial wave of liquidations that then accelerates into a sharper, faster move as the broader market reacts.
The mechanism Martinez described is familiar in crypto markets: when liquidity sits in a concentrated area, price can be driven into it in order to force traders to cover.
In his framing, market makers and large holders often move prices toward high-liquidity zones to “flush” speculators, using the buyback pressure that results from liquidations as fuel for an upward drive.
Support Levels Tied To Concentrated Supply Areas
Martinez also tied this near-term setup to an earlier analysis about where Bitcoin’s supply is concentrated. He previously argued that BTC sits above a broad supply cluster spanning roughly $73,200 down to $63,100, describing it as a region where a large number of holders have “voted” through their cost basis.
In his interpretation, as long as Bitcoin trades inside that band, those investors are psychologically incentivized to defend their entries, which can help stabilize the price.
However, he cautioned that if $63,100 fails to hold, Bitcoin may move into what he called a “liquidity vacuum.” In that scenario, Martinez said the next meaningful support level would be significantly lower, leaving fewer buyers willing—or able—to absorb selling pressure.
Critical Levels And CVDD Indicator
Beyond the immediate liquidation narrative, Martinez also pointed to what he described as a long-standing technical “Decade Trendline,” which he characterized as one of Bitcoin’s most respected technical reference points.
For nearly ten years, he said the ascending trendline has historically acted as a “Parabolic Guard,” with prior touches preceding major expansions.
According to Martinez, Bitcoin is approaching this line now, between roughly $56,000 and $60,000, and that historically this is where “smart money” tends to complete accumulation before the next leg upward.
However, Bitcoin would need to decline by a further 23% and 17%, respectively, from its current trading price of over $73,000 to reach the range indicated by the expert.
To identify what he referred to as the “Line in the Sand,” Martinez said he looks to CVDD, or Cumulative Value Days Destroyed.
In his view, the current CVDD value is around $47,960. He described it as the “ultimate structural foundation,” and added that if the broader macro environment deteriorates, this is the level where he expects a violent reversal to the upside.
Featured image from OpenArt, chart from TradingView.com