BTC is trapped in a "three-layer meat" squeeze at 89,000, and Non-Farm Night becomes the key to a trend reversal! 1.1 billion liquidation zone and technical double kill simultaneously occur

Bitcoin has recently been testing the 89,000-93,000 range repeatedly, with the current price around 91.91K (+1.23%), and the market showing highly sensitive oscillations. This is not just simple fluctuations up and down, but a perfect collision between liquidity and technical factors.

Liquidity Traps Are Set, Non-Farm Payrolls Become the Trigger

The Horrific Attraction of the Liquidation Zone

On-chain data shows that there are currently up to $1.127 billion in long liquidation positions below 89,000, while above 93,000 there are $960 million in short liquidation zones. This distribution is not coincidental—it reflects market participants’ divergent expectations about the price direction.

Under this structure, any downward movement could trigger a chain of liquidations. The massive $1.127 billion positions are like “three-layered meat” stacked in a gunpowder magazine; once ignited, the liquidation steps will unfold rapidly.

The Macro Trigger of Non-Farm Payroll Data

Tonight, the US will release December non-farm employment data. Institutions expect employment growth to show signs of weakness, but the unemployment rate may drop to 4.5%. This data directly impacts the Federal Reserve’s interest rate decisions and, in turn, affects the entire risk asset market.

If the data shows sluggish economic growth but relatively stable employment figures, the market will fall into a “stagflation expectation” dilemma. Such data often triggers risk aversion sentiment, putting risk assets under selling pressure. During high volatility, non-farm payroll data can easily serve as a cover for liquidity hunts.

Technicals Have Already Sounded the Alarm

Danger Signals on the 4-Hour Chart

The middle band of the Bollinger Bands is running around 90,000, with the current price below the middle band, and the upper and lower bands widening, indicating increasing volatility. This is not healthy consolidation but a state of instability before a buildup.

The 90,000 level has shifted from support to short-term resistance. Each attempt to approach is met with selling pressure, indicating weakening upward momentum. Conversely, below, the 88,000-89,000 zone forms a dense technical support and liquidity concentration area.

Certainty of Technical Targets

The immediate short-term target is the 88,000-89,000 zone. This area is not only a technical support level but also the concentration of the $1.127 billion liquidation positions. The resonance of technical breakdown and liquidity-driven forces here could accelerate a move toward deeper support levels once downward momentum is established.

The Market’s Brewing “Three-Layered Meat” Kill

The current situation can be understood as follows: technical indicators show short-term weakness, macro risks from non-farm data add pressure, and the liquidation zones form a massive liquidity trap. These three factors combined create a precise suppression of the bulls.

The logic of liquidity hunting is simple—areas with the densest liquidity are most vulnerable to impact. The $1.127 billion liquidation positions are highly likely to be triggered during high volatility, and the non-farm data just provides the catalyst for such volatility.

However, it is important to note that large-scale liquidations are often followed by quick reversals. If 89,000 is effectively broken and triggers chain liquidations, after the short-term sell-off is cleared, a rebound opportunity may also emerge.

Trading Strategies and Risk Tips

Conservative Approach: Observe whether 89,000 can hold as support. If the price rebounds near 90,000 and encounters resistance, confirm a bearish pattern. You can look for rebound opportunities around 89,000 but must set strict stop-losses, as this level could either hold as support or be quickly broken.

Aggressive Approach: If the current rebound is weak, the short-term downward pressure remains. Short positions should be taken only if quick profit-taking is possible, as the nearby key support zones will see increased volatility. Focus on whether 89,000 can be effectively broken—breaking below could open deeper downside space.

Overall Judgment: Volatility tonight is destined to increase. 89,000 is the first critical battleground; holding it allows bulls to breathe; losing it could lead to a short-term bloodbath. Regardless of the scenario, risk management is essential—this is basic knowledge during high volatility periods.