Bitcoin Surpasses $95,000 May Trigger $9.08 Billion Short Liquidations

According to data from Coinglass, if Bitcoin surpasses the $95,000 mark, the cumulative short liquidation intensity for mainstream centralized exchanges (CEXs) is projected to reach $9.08 billion. This significant figure underscores the potential market impact if Bitcoin were to breach this threshold, as it would trigger a substantial number of short positions being liquidated.

Conversely, if Bitcoin's price drops below $92,000, the cumulative long liquidation intensity for mainstream CEXs is estimated to reach $9.01 billion. This scenario highlights the risk for long positions, indicating that a price drop to this level could result in a massive liquidation of long positions.

It is important to note that the liquidation chart provided by Coinglass does not display the exact number of contracts awaiting liquidation or the precise value of contracts being liquidated. Instead, the bars on the liquidation chart represent the relative importance of each liquidation cluster compared to neighboring clusters, essentially measuring the intensity of liquidations at specific price points.

This intensity metric is crucial for understanding the potential market reaction at different price levels. A higher "liquidation bar" indicates that reaching that price level could cause a more intense market reaction due to a surge in liquidity. This information is valuable for traders and investors as it provides insights into potential price movements and the associated risks.