Bitcoin's $103,000 Drop Could Trigger $944M Long Liquidations

According to data from Coinglass, if Bitcoin's price falls below $103,000, the cumulative long liquidation intensity of mainstream centralized exchanges (CEXs) will reach $944 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 shows the relative importance of each liquidation cluster to adjacent clusters, indicates that a higher "liquidation bar" suggests a stronger response due to a liquidity cascade when the price reaches that level.

Conversely, if Bitcoin's price exceeds $105,000, the cumulative short liquidation intensity of mainstream CEXs will reach $475 million. This highlights the potential market reaction if short positions are liquidated at this higher price point. The liquidation chart does not provide the exact number of contracts to be liquidated or their exact value but rather shows the relative importance of each liquidation cluster. This information is crucial for understanding the potential market impact at specific price levels.

It is important to note that the liquidation chart is a tool to gauge the potential market response to price movements. A higher liquidation bar indicates that the price will have a stronger reaction due to a liquidity cascade when it reaches that level. This information can be valuable for traders and investors looking to manage their positions and understand the potential market dynamics at different price points.