Bitcoin’s Next Trap Zone? $62K Liquidity Pull Meets Monthly W Setup

Bitcoin traders are mapping the next key levels as a heatmap points to a rebuilt $62,000 liquidity pocket while the monthly chart sketches a possible W base inside a rising channel. Together, the signals frame a market stuck between near term downside draw and a longer term structure that still leaves room for another upside leg.

Bitcoin Heatmap Flags $62,000 Liquidity Pocket as BTC Holds Near $66,600

Bitcoin hovered near $66,600 as traders assessed shifting liquidity levels highlighted by market commentator Columbus on X. In a Monday update, he pointed to fresh downside liquidity rebuilding around the $62,000 zone, according to the latest MMT heatmap data. The visualization showed dense liquidation clusters below current price, while overhead liquidity appeared more distributed across the mid $70,000 to low $80,000 range.

Bitcoin MMT Heatmap 4H Chart. Source: Columbus on X

Columbus said new liquidity pockets had formed across the broader range, with a notable concentration just under $62,000. As a result, he noted that recent geopolitical headlines over the weekend could increase the likelihood of price moving toward that lower band early in the week. The heatmap displayed bright horizontal zones beneath spot price, indicating areas where leveraged positions could face forced liquidations if tested.

Meanwhile, Bitcoin continued to trade inside a multi week consolidation after a sharp drop earlier in February. The chart showed price compressing between roughly $64,000 and $70,000, with repeated short term rallies failing to produce sustained upside continuation. Columbus added that, for now, upward moves appear to function as positioning resets rather than the start of a broader expansion phase.

He also said the downside draw remains active unless market structure shifts decisively. In other words, until buyers reclaim higher liquidity bands and invalidate the lower pocket around $62,000, the path of least resistance may remain tilted lower. Consequently, traders are watching whether price gravitates toward the newly rebuilt liquidity zone or stabilizes above current support levels in the sessions ahead.

Bitcoin Monthly Chart Shows Potential W Pattern Inside Long Term Uptrend Channel

Bitcoin’s monthly chart is drawing attention after market commentator Time Freedom ROB highlighted a potential W pattern forming within a long term ascending channel. The TradingView chart shows Bitcoin moving between two upward sloping white trendlines that have framed price action since 2016. Within that structure, previous cycle lows and highs align with repeated tests of channel support and resistance.

Bitcoin Monthly W Pattern Channel Chart. Source: TimeFreedomROB on X

The chart outlines two major W shaped formations across prior cycles. In both cases, Bitcoin formed a rounded bottom near the lower boundary of the channel before breaking higher toward the upper trendline. The current structure appears to mirror that behavior, with price stabilizing above the candle body of the previous all time high, similar to the setup seen after the 2018 cycle peak.

Horizontal levels drawn across former resistance zones now act as structural reference points. In prior cycles, once Bitcoin reclaimed those areas on the monthly timeframe, momentum expanded toward the upper channel boundary. The latest candles show consolidation near a mid channel zone, while the broader pattern remains intact as long as price holds above the rising support line.

The Relative Strength Index on the monthly timeframe adds another layer to the analysis. Previous cycle tops coincided with RSI pushing into the upper band near overbought territory, followed by sharp resets. The current RSI reading sits in the mid range after cooling from earlier highs, and the chart projection suggests a potential push higher before another momentum rollover.

Time Freedom ROB noted that price is bottoming above the body of the previous all time high candle, which echoes the structure seen in the last cycle. If the channel continues to guide price action, the historical pattern suggests expansion phases tend to follow extended consolidation near support. However, confirmation would depend on sustained strength inside the rising channel and a break toward its upper boundary.