Bitcoin's Price Below $95,000 Could Trigger $623M Long Liquidations

According to data from Coinglass, if Bitcoin's price falls below $95,000, the cumulative long liquidation intensity of mainstream centralized exchanges (CEXs) will reach 623 million. This figure represents the relative importance of each liquidation cluster compared to neighboring clusters, indicating the potential impact on the asset's price due to liquidity cascades.

Conversely, if Bitcoin's price surpasses $97,000, the cumulative short liquidation intensity of mainstream CEXs will reach 242 million. This suggests that a price increase beyond this threshold could trigger significant short liquidations, potentially stabilizing or even reversing the upward price movement.

The liquidation chart, as noted, does not provide the exact number or value of contracts to be liquidated. Instead, it highlights the intensity of liquidation clusters, offering insights into how the asset's price might react at specific levels. A higher "liquidation bar" on the chart indicates a more intense reaction due to liquidity cascades when the price reaches that point.

This information is crucial for traders and investors, as it provides a clearer picture of potential price movements and the associated risks. Understanding these liquidation intensities can help in making more informed trading decisions and managing risk more effectively.