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Bitcoin's $100,000 Surge Could Trigger $396M Short Liquidation

Coin WorldWednesday, May 7, 2025 9:29 pm ET

1min read

Recent analytics from Coinglass have highlighted significant thresholds for Bitcoin’s price movement. If Bitcoin surpasses the $100,000 mark, it could trigger a massive short liquidation of nearly $396 million across major centralized exchanges. This scenario underscores the potential for substantial market shifts as traders adjust their positions in response to the price surge.

Conversely, if Bitcoin's price dips below $96,000, it could result in a long liquidation intensity of approximately $305 million. This dual threshold highlights the volatility and sensitivity of the market to price movements around these key levels. The liquidation chart provided by Coinglass does not specify the exact number of contracts or the precise value of assets being liquidated. Instead, it illustrates the relative importance of various liquidation clusters, emphasizing how different price levels may influence subsequent market reactions.

A heightened “liquidation bar” on the chart indicates a more profound market response, suggesting that the potential for a liquidity cascade increases as Bitcoin approaches these critical price thresholds. This analysis underscores the importance of monitoring these levels closely, as they could significantly impact market dynamics and trader behavior. The potential for large-scale liquidations at these thresholds highlights the need for caution and strategic planning among traders and investors in the cryptocurrency market.

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