Bitcoin's $102,000 Drop Could Trigger $1.148B Liquidations

Coin WorldFriday, May 16, 2025 4:53 am ET
1min read

According to data from Coinglass, if Bitcoin falls below $102,000, the cumulative long liquidation intensity on mainstream centralized exchanges (CEXs) will reach $1.148 billion. This significant figure highlights the potential market impact if Bitcoin's price drops to this level. The liquidation chart, which represents the importance of each liquidation cluster relative to adjacent clusters, indicates that reaching this price point could trigger a substantial reaction due to a liquidity cascade.

Conversely, if Bitcoin surpasses $105,000, the cumulative short liquidation intensity on mainstream CEXs will reach $0.821 billion. This suggests that a price surge above $105,000 could also have a notable impact on the market, albeit to a lesser extent compared to a drop below $102,000. The liquidation chart serves as a visual representation of how price movements can affect market liquidity and stability.

It is important to note that the liquidation chart does not provide the exact number of contracts waiting to be liquidated or the exact value of contracts being liquidated. Instead, it shows the relative importance of each liquidation cluster, indicating the potential market reaction at different price levels. Higher "liquidation bars" on the chart signify that reaching a certain price level will trigger a more significant market response due to increased liquidity cascades.

In summary, the data from Coinglass underscores the sensitivity of the Bitcoin market to price movements around the $102,000 and $105,000 levels. Market participants should be aware of the potential for significant liquidations and the resulting impact on market stability at these critical price points. Understanding the liquidation intensity can help traders and investors make more informed decisions and better manage their risk exposure in the volatile cryptocurrency market.

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