Bitcoin's $100K Breach Could Spark $386M Short Liquidation Wave

Bitcoin's potential breach of the $100,000 mark could trigger a significant wave of short liquidations on mainstream centralized exchanges (CEXs), according to recent data. If the cryptocurrency's price were to surpass this milestone, the cumulative short liquidation pressure would reach a staggering $386 million, as per Coinglass data.

Conversely, if Bitcoin were to dip below $95,000, the cumulative long liquidation pressure would reach $466 million. This underscores the volatility and risk associated with trading cryptocurrencies, particularly when using leverage.

It is essential to note that the liquidation chart provided by Coinglass does not specify the exact number of contracts or their value that would be liquidated. Instead, the bars on the chart represent the relative importance of each liquidation cluster compared to adjacent ones, indicating the intensity of the liquidation.

Therefore, the liquidation chart serves as an indicator of the potential impact on the target price when it reaches a specific level. A higher "liquidation bar" suggests that the price will experience a more intense reaction due to a liquidity cascade upon reaching that level.