Bitcoin's $101,000 Drop Could Trigger $934M Long Liquidations

According to data from coinglass, if Bitcoin's price falls below $101,000, the cumulative long liquidation intensity of major centralized exchanges (CEXs) will reach $934 million. This figure represents the potential impact on the market if a significant number of long positions are liquidated at this price level. The liquidation chart, which illustrates the intensity of liquidations, does not provide exact numbers of contracts or their values but rather shows the relative importance of each liquidation cluster. A higher "liquidation bar" indicates a more intense reaction due to a liquidity cascade once the price reaches that level.

Conversely, if Bitcoin's price surpasses $104,000, the cumulative short liquidation intensity of major CEXs will reach $915 million. This suggests that a price surge above this threshold could trigger a wave of short position liquidations, potentially causing a significant market reaction. The liquidation chart helps traders and analysts understand the potential impact of price movements on liquidity and market stability.

It is important to note that the liquidation chart does not show the exact number of contracts to be liquidated or the exact value of contracts to be liquidated. The bars on the liquidation chart actually represent the importance of each liquidation cluster relative to neighboring liquidation clusters, i.e., intensity. Therefore, the liquidation chart shows to what extent the target price will be affected when it reaches a certain position. A higher "liquidation bar" indicates that the price will experience a more intense reaction due to a liquidity cascade once it reaches that level.

Ask Aime: "Will Bitcoin's price drop below $101,000 and trigger massive liquidations?"