Bitcoin's $100,000 Drop Could Trigger $288M Long Liquidations

According to data from Coinglass, if Bitcoin's price falls below $100,000, the cumulative long liquidation intensity for mainstream centralized exchanges (CEXs) will reach 288 million. This figure represents the relative importance of liquidation clusters at this price level, indicating a significant potential impact on the market.

Conversely, if Bitcoin's price surpasses $104,000, the cumulative short liquidation intensity for mainstream CEXs will reach 252 million. This suggests that a price surge above this threshold could also trigger substantial market reactions, albeit in the opposite direction.

It is important to note that the liquidation chart does not provide exact numbers of contracts to be liquidated or their precise values. Instead, the bars on the chart illustrate the relative significance of each liquidation cluster compared to adjacent clusters, reflecting the intensity of liquidation at specific price levels.

This intensity metric is crucial for understanding the potential market impact. A higher "liquidation bar" indicates that the price of the underlying asset will experience a more intense reaction due to a liquidity cascade when it reaches that level. This information is valuable for traders and investors who need to anticipate market movements and manage their positions accordingly.