Bitcoin's $100K Surge: $1B Short Liquidation Looms

Bitcoin's price surge towards $100,000 is expected to trigger a significant increase in short liquidation pressure on mainstream centralized exchanges (CEXs), according to data from Coinglass. If Bitcoin breaks through this psychological barrier, the cumulative short liquidation pressure could reach $1.012 billion.

Conversely, if Bitcoin's price falls below $95,000, the cumulative long liquidation pressure on mainstream CEXs would reach $862 million. It is essential to note that the liquidation chart does not display the exact number of contracts to be liquidated or the precise value of contracts liquidated. Instead, it represents the importance of each liquidation cluster relative to adjacent clusters, indicating the intensity of liquidation.

The liquidation chart provides insights into the extent to which the underlying price will be affected when it reaches a certain position. A higher "liquidation bar" suggests that the price will have a more intense reaction due to a liquidity surge. As Bitcoin's price approaches $100,000, market participants should be aware of the potential impact on liquidation pressure and adjust their strategies accordingly.