The analysis discusses two methods to measure leverage in the crypto market: open interest and bitcoin liquidation heatmaps. Open interest increased by 40% in nine months from January 2025 to October 2025, while the crypto market only rose by 15%. After a recent crash, open interest fell by 50% to $70 billion, indicating a leverage reset. Bitcoin liquidation heatmaps show clusters of stop losses for leveraged positions. Before a recent drawdown, there was a concentration of stop losses below the price, setting the stage for a liquidation cascade. Currently, there is $3 billion in potential short liquidations if Bitcoin rises to $127,000, while there is $100 million in potential long liquidations if it falls to $100,000. The analyst infers that there is a 30x more liquidity stacked above the price indicating that if bitcoin rises to $127,000, a short squeeze may occur . The analyst predicts Bitcoin will rise to flush out shorts before a bear market.